Automakers agree to offer discount of 1% if old vehicle scrapped

PMO bats for incentivising scrapping, not imposing it on owners of old vehicles

Car scrapping
The Central government had in November last year notified a scrap-recycling policy to promote circular economy in the steel sector and utilise the scrap of vehicles and white goods that were not usable

The automobile industry has agreed to a government proposal to give a discount of 1 per cent on purchasing new vehicles if, correspondingly, an old one is scrapped. The government wants to incentivise scrapping old vehicles because of apprehensions of a backlash from the transporter lobby. Union Minister of Road Transport and Highways Nitin Gadkari had a meeting with the automobile industry, represented by the Society of Indian Automobile Manufacturers (SIAM), earlier this week. In the meeting a 3 per cent discount on new vehicles was proposed. While the automobile ...