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Vehicle scrapping policy: Experts say scheme not sales bonanza for firms

Actual number of vehicles available for scrapping 'a fourth of govt estimates'

vehicle scrapping
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According to the MoRTH’s estimates, India has 5.1 million light motor vehicles which are 20-year-old or older

Shally Seth MohileArindam Majumdar Mumbai/New Delhi
The scrapping incentive policy, announced by the Ministry of Road Transport and Highways (MoRTH) on Thursday, won’t have a meaningful impact on new vehicle sales, according to industry executives and transport experts. They said the actual number of vehicles available for scrapping is almost a fourth of government-estimated volumes.
 
According to the MoRTH’s estimates, India has 5.1 million light motor vehicles which are 20-year-old or older; those above 15-year-old are estimated at 3.4 million. The ministry estimates the volume of M&HCVs (medium and heavy commercial vehicles) more than 15-year-old and without a valid fitness certificate to be 1.7 million.

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First Published: Mar 20 2021 | 6:10 AM IST

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