New Delhi: Leading automakers including Maruti Suzuki , Hyundai Motor India and Tata Motors Tuesday said they will extend discounts on new vehicle purchases against scrapped vehicles , under the government's Voluntary Fleet Modernisation Programme (VVMP) scheme. These discounts will be extended for a limited period of one year by passenger vehicle makers, and two years by commercial vehicle makers, according to an official statement. The announcement came after a meeting of Minister for Road, Transport & Highways (MoRTH) Nitin Gadkari with representatives of the automobile industry.
The initiative is a significant step forward in advancing India's circular economy, promoting the use of cleaner, safer and more efficient vehicles, according to the statement. Passenger vehicle makers Maruti Suzuki , 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 offered discount of 1.5% of the ex-showroom price of a new car or ₹20,000, whichever is lower, against the passenger vehicle scrapped by an owner in the last six months.
German luxury carmaker Mercedes Benz India has offered a flat discount of ₹25,000, which will be over and above all existing discounts, the statement said. Details of the scrapped vehicle will be linked in the government's Vahan portal . Companies may voluntarily offer additional discounts on identified models.
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