People opting for scrapping should get discount on new vehicles: Gadkari

Auto companies will see business increasing by 25-30 per cent thanks to scrapping, says minister

People scrapping their old vehicles increase the revenues of auto companies and should get discounts for new purchases, said Minister for Road Transport and Highways Nitin Gadkari on Wednesday.

“My request to you—I do not want to make it mandatory because some companies are ready and some are not—is that the persons who have scrapping certificates, if you can offer them some discounts,” he said at the 62nd annual convention of Society of Indian Automobile Manufacturers (SIAM).

A discount of Rs 50,000-Rs 1 lakh can be given for big vehicles like trucks or buses and the amount can be less