InvestorQ : What are the major changes that you see happening in the auto industry as a result of the New Scrappage Policy?
Moii Chavate made post

What are the major changes that you see happening in the auto industry as a result of the New Scrappage Policy?

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Tisha Malhotra answered.
3 weeks ago
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The vehicle scrappage scheme could usher significant increase in demand for new vehicles, especially commercial vehicles. It will also usher in a unique ecosystem consisting of fitness centres and scrap yards to judge condition of vehicles before scrapping it. CVs more than 15 years old and passenger vehicles over 20 years will have to be mandatorily scrapped if they don’t pass fitness/emission tests. Government departments will scrap vehicles in 15 years.

Vehicle owners who voluntarily scrap vehicles get a rebate on road tax ranging from 15% to 25% and full waiver of registration fees on the next new vehicle purchase. Manufacturers also must offer a discount of 5% against certificate of vehicle scrapping.

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