The Union Minister for Road Transport & Highways, Nitin Gadkari, recently convened a meeting with leaders from the passenger and commercial vehicle sectors, urging them to offer discounts for new vehicle purchases when customers scrap their old ones. This initiative was confirmed during a discussion at Bharat Mandapam in New Delhi with the Society of Indian Automobile Manufacturers (SIAM) CEOs.
Gadkari shared on social media that several vehicle manufacturers agreed to provide discounts against the scrapping of older vehicles, emphasizing that this move would bolster efforts toward a Circular Economy, ensuring that cleaner and more efficient vehicles populate Indian roads.
Discounts for Passenger Vehicles
Prominent manufacturers, including Maruti Suzuki, Hyundai, Tata Motors, and others, will offer a discount of 1.5% of the ex-showroom price of new vehicles, capped at ₹20,000. This discount applies when an owner scraps a vehicle within six months, with the scrapped vehicle’s details linked to the Vahan system. It’s important to note that only the scrappage discount is available, excluding any additional exchange offers.
Benefits for Commercial Vehicles
For commercial vehicles, companies such as Tata Motors, Ashok Leyland, and Mahindra & Mahindra will provide a 3% discount on ex-showroom prices for vehicles over 3.5 tonnes and a 1.5% discount for lighter models. Gadkari expressed gratitude to the manufacturers participating in this Vehicle Fleet Modernization Programme, hoping others will join the initiative.
In a supportive statement, Mahindra expressed pride in contributing to the government’s Fleet Management Program, highlighting the importance of transitioning to cleaner and safer vehicles. The company emphasized its commitment to sustainable mobility and enhanced road safety, reinforcing the collaborative effort toward modernizing India’s vehicle fleet.