The statement said the plan could also be considered for buses and vans. | Photo: Bloomberg
Ahead of the festive season, several commercial and passenger vehicle manufacturers have agreed to offer discounts of between 1.5 and 3 per cent on purchase of new vehicles over old scrapped vehicles after a meeting with Union Minister Nitin Gadkari, an official statement said on Tuesday.
The statement added that Mercedes Benz India has offered a flat discount of Rs 25,000, which will be added to all existing discounts.
Union Minister for Road Transport and Highways (RT&H) Nitin Gadkari on Tuesday chaired a meeting with the SIAM delegation at Bharat Mandapam, where he addressed pressing issues in the automobile industry.
“During this interaction, responding positively to the advice of the RT&H Minister and recognising the importance of Fleet Modernisation and Circular Economy, several commercial vehicle manufacturers and several passenger vehicle manufacturers agreed to offer discounts for a limited period against a certificate of deposit (Scrapping Certificate),” the statement said.
He said commercial vehicle manufacturers are willing to offer discounts for a limited period of two years and passenger vehicle manufacturers are willing to offer discounts for a limited period of one year.
The statement said that these discounts will further encourage the scrapping of vehicles, thus ensuring the circulation of safer, cleaner and more efficient vehicles on the roads.
According to the statement, passenger vehicle manufacturers namely Maruti Suzuki India Ltd, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia Motors, Toyota Kirloskar Motor, Honda Cars, JSW MG Motor, Renault India, Nissan India and Skoda Volkswagen India will offer a discount of 1.5 per cent of the ex-showroom price of the new car or Rs 20,000, whichever is lower, against the passenger vehicle scrapped by the owner in the last 6 months.
“The details of the scrapped vehicle will be linked to the Vahan system,” the statement said, adding that companies will be able to voluntarily offer additional discounts on the identified models.
The statement noted that each passenger vehicle manufacturer may be free to extend this discount only to identified models within its vehicle portfolio.
“As the car is not being exchanged but only scrapped, between the exchange discount and the scrap discount, only the scrap discount will be applied,” he said.
According to the statement, commercial vehicle manufacturers namely Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors and SML Isuzu will offer a discount equivalent to 3 per cent of the ex-showroom price for a commercial cargo vehicle weighing more than 3.5 tonnes.
“The discount to be offered to a person purchasing a vehicle against a Traded Warehouse Certificate of a scrapped commercial vehicle would be equivalent to 2.75 per cent of the ex-showroom price for scrapping a commercial cargo vehicle with more than 3.5 tonnes GVW (gross vehicle weight),” it said.
The statement said the plan could also be considered for buses and vans.
According to sources, the meeting was attended by top officials from the auto industry including SIAM Chairman Vinod Aggarwal, Maruti Suzuki India MD & CEO Hisashi Takeuchi, Tata Motors MD Girish Wagh, Ashok Leyland MD & CEO Shenu Agarwal and TVS Motor Co MD KN Radhakrishnan, among others.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 27, 2024 | 19:06 IS
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