You can now trade in your old, clunky car for a shiny new model and save some extra cash. Thanks to recent developments in the automotive sector, this dream is becoming a reality. Many leading vehicle manufacturers like Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai Motors, and others announced that they are ready to offer discounts to buyers, condition that they have a valid Certificate of Deposit.
This announcement came from Union Minister for Road Transport & Highways Nitin Gadkari in a recent X post. During a meeting with CEOs from the Society of Indian Automobile Manufacturers (SIAM) at Bharat Mandapam in New Delhi, Gadkari said he encouraged the industry to offer discounts on new vehicle purchases for customers who scrap their old cars. The proposal, he later confirmed was well-received, and manufacturers have agreed to implement these incentives.
📍Bharat Mandapam, New Delhi 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..
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com/9n4aUdgoby So, just how much can you save by scrapping your old car? Here’s a detailed breakdown. The big discounts According to a report by The Times of India , car buyers can expect discounts ranging from 1.5 per cent to 3.
5 per cent when they scrap their old vehicle and purchase a new one. For passenger vehicles, major brands like Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra, Kia, Honda, Toyota, JSW MG Motor, Renault, Nissan, Skoda, and Volkswagen are offering a discount of up to 1.5 per cent on the ex-showroom price or Rs 20,000, whichever is lower.
This discount applies to cars that have been scrapped within the last six months and is valid for a limited period of one year. In the commercial vehicle sector, manufacturers including Tata Motors, Volvo Eicher, Ashok Leyland, Mahindra & Mahindra, Force Motors, and SML Isuzu are offering discounts based on the vehicle’s weight. For commercial vehicles over 3.
5 tonnes, the discount ranges from 1.5 per cent to 3 per cent on the ex-showroom price. For vehicles under 3.
5 tonnes, a 1.5 per cent discount applies. These discounts are available for up to two years and must be claimed by the vehicle owner.
Luxury car brand Mercedes-Benz is also getting in on the action, offering a flat Rs 25,000 discount for a scrapped vehicle. To qualify for these discounts, the scrapped vehicle’s details must be linked to the national register of vehicles called the Vahan system. In both cases, the discounts will be in addition to the scrap value paid by registered scrappage centres and any normal discounts offered by the companies, The Times of India report said.
‘India can be a scrapping hub’ Previously, Union Minister Nitin Gadkari highlighted the National Vehicle Scrappage Policy as a major win for all stakeholders, envisioning India as a key scrapping hub in South Asia. “Circular economy is very important and it is going to create jobs in the country,” Gadkari had remarked. Prime Minister Narendra Modi introduced the National Vehicle Scrappage Policy in August 2021, aiming to phase out unfit and polluting vehicles while promoting a circular economy.
The policy, which took effect from April 1, 2022, includes provisions for up to a 25 per cent tax rebate on road tax for new vehicles purchased after scrapping old ones. Under the policy, personal vehicles will require fitness tests after 20 years, while commercial vehicles will need them after 15 years. Announced in the Union Budget 2021-22, this policy is designed to enhance vehicle efficiency and environmental sustainability.
Gadkari had also called for the establishment of 1,000 vehicle scrapping centres and 400 automated fitness test centers across the nation to support this initiative. With input from agencies.
