Auto industry body SIAM on Thursday said the draft guidelines on authorised vehicle scrapping facility (AVSF) in India will help in setting up of such facilities in an organised manner, while reiterating that the sector is waiting for incentive-based Vehicle Scrappage Policy from the government.
Welcoming the draft guidelines released by the Ministry of Road Transport & Highways for setting up of AVSF, Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said the automobile industry wholeheartedly supports the vehicle scrappage initiative of government.
"The draft guidelines will help in establishing organised vehicle scrapping facilities in the country and will lead to increase in latent demand for end-of-life vehicles available for scrapping," he said in a statement.
Vehicle scrappage initiative of the government will not only help in removing old and polluting vehicles from roads, but will also increase demand for new vehicles having better emission technology, meeting superior safety standards and at the same time lead to savings of fuel, foreign exchange, raw material, Wadhera added.
Seeking an early scrappage policy, he said, "automobile industry keenly awaits an incentive based vehicle scrappage policy also from the government, which will help fleet modernisation on a regular basis."
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