“Get Discounts When You Scrap Old Vehicles for New Ones, Announces Nitin Gadkari”
Get Discounts When You Scrap Old Vehicles for New Ones, Announces Nitin Gadkari
On August 27, 2024, Union Minister for Road Transport and Highways, Nitin Gadkari, announced a new initiative that will provide discounts on new vehicles when old ones are scrapped. This development came after Gadkari led a significant meeting with the Society of Indian Automobile Manufacturers (SIAM) at Bharat Mandapam in New Delhi, addressing pressing issues in the automotive sector.
Gadkari revealed that numerous vehicle manufacturers have agreed to participate in this scheme, offering discounts for purchasing new vehicles when older ones are turned in with a valid Certificate of Deposit. He shared the news on X, stating, “I am delighted to announce that, following my recommendation, several commercial and passenger vehicle makers will offer discounts on new vehicles in exchange for scrapping old ones. This will greatly advance our Circular Economy efforts and help ensure that cleaner, safer, and more efficient vehicles are on the road.”
📍𝑩𝒉𝒂𝒓𝒂𝒕 𝑴𝒂𝒏𝒅𝒂𝒑𝒂𝒎, 𝑵𝒆𝒘 𝑫𝒆𝒍𝒉𝒊
— Nitin Gadkari (@nitin_gadkari) August 27, 2024
Chaired a highly productive session of the SIAM CEO’s Delegation Meeting at Bharat Mandapam today, where we addressed various critical issues facing the automobile industry.
I am pleased to report that, in response to my… pic.twitter.com/9n4aUdgoby
The discounts are aimed at encouraging the replacement of outdated vehicles with newer models, thus supporting environmental and economic benefits. Discounts are expected to range from 1.5% to 3% off the price of new vehicles. Luxury car manufacturers may offer discounts up to ₹25,000, while other companies might cap the maximum discount amount.
Commercial vehicle manufacturers will offer discounts for up to two years, while passenger vehicle manufacturers will extend their discounts for one year. Companies like Volvo, Eicher, Tata Motors, and Ashok Leyland will provide a 3% discount on new commercial vehicles. Customers using a Traded Certificate of Deposit from a scrapped commercial vehicle will receive a 2.75% discount on the new vehicle’s ex-showroom price.
Gadkari expressed his gratitude to the manufacturers joining the Vehicle Fleet Modernization Programme and hopes this initiative will inspire more to follow suit. He emphasized that this effort is a significant step toward enhancing the sustainability and efficiency of India’s vehicle fleet.
