Automakers to give discounts to those scrapping old vehicles to buy new ones: Nitin Gadkari

Gadkari made this announcement during a productive session with the Society of Indian Automobile Manufacturers (SIAM) CEO delegation meeting at Bharat Mandapam in New Delhi, where he addressed key issues facing the automobile industry.

Taking to X, Gadkari said, "I am pleased to report that, in response to my recommendation, several commercial and passenger vehicle manufacturers have agreed to offer discounts for the purchase of new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit. This initiative will significantly advance our Circular Economy efforts, ensuring that cleaner, safer, and more efficient vehicles are on our roads."

He then congratulated and thanked the automobile manufacturers who took the initiative to participate in the Vehicle Fleet Modernization Programme.

According to a report in The Times of India, major automakers are expected to offer discounts of 1.5-3.5 percent to buyers who trade in their old vehicles for new ones.

Some leading luxury car manufacturers have agreed to offer a discount of approximately Rs 25,000, while others are anticipated to set a maximum discount limit, the report added, citing sources.

SIAM President Vinod Aggarwal in July had said, "We are expecting that the government could do something more on the incentives for the scrapping of vehicles, because the scrappage policy is already in place but we have not seen much impact of that.

He further said, "And so therefore, to give further boost to the scrapping of old polluting vehicles, I think something needs to be done."

Aggarwal stated that the government should persist in implementing initiatives that are beneficial for the economy.