Budget 2021: Vehicle scrappage policy to help commercial vehicle makers

Auto industry says move will largely impact sale of commercial vehicles like buses and trucks but is unlikely to give a fillip to sale of personal vehicles

Incentivising motorists and freight operators to purchase new vehicles and discouraging the operation old ones is going to be the crux of the vehicle scrappage policy.

“A voluntary scrappage policy is to be launched, aimed at reducing vehicular pollution. There will be a fitness test after 20 years for personal vehicles, 15 years for commercial vehicles,” finance minister Nirmala Sitharaman said in her budget speech today.

“The vehicle scrappage policy will not take off if adequate incentives are not given to those who are looking to scrap. We have made this very clear in our representations to the government several times and