Scrapping old vehicles to buy new, Nitin Gadkari says you can get big discounts now

Auto majors will likely offer 1.5-3.5% discounts for buyers scrapping old vehicles to buy new ones, advancing Circular Economy efforts.

Nitin Gadkari, minister of Road Transport & Highways, said that several commercial and passenger vehicle manufacturers will offer discounts for buying new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit.

Union road and transport minister Nitin Gadkari (File)

He 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."

Owing to this, auto majors are likely to offer 1.5-3.5 percent discount to buyers who scrap their old vehicles to buy a new one, according to a report in The Times of India.

Mahindra told Hindustan Times, "We are committed to contributing to this important initiative and are pleased to offer attractive discounts on the purchase of new Mahindra vehicles in exchange for the scrapping of older vehicles, provided they come with a valid Certificate of Deposit. This collaboration reflects our dedication to promoting sustainable mobility and enhancing road safety across the nation.”

Earlier, SIAM president Vinod Aggarwal 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 added, "And so therefore, to give further boost to the scrapping of old polluting vehicles, I think something needs to be done."