NEW DELHI: Just ahead of the festive season, auto majors, from passenger car makers to luxury vehicle manufacturers and heavy transport players, have agreed to offer 1.5-3.5% discount to buyers who scrap their old vehicles and buy a new one, reports Dipak Dash.
Some of the top luxury car makers have agreed to around Rs 25,000 discount while others are also expected to put a ceiling on the maximum amount, sources told TOI.
Auto industry and govt are expected to unveil the measures on Tuesday. Since the scrapping policy was unveiled in March 2021, road transport and highways minister Nitin Gadkari is pushing for concessions, such as discounts and lower GST, to encourage buyers to scrap their old vehicles.
In 2022, the ministry sent an advisory to automobile unions to get their members to offer up to 5% discount on sale price in lieu of scrapped vehicles, but the industry ignored it & opted to negotiate a discount that’s commercially viable.
Govt has taken initiatives to set up 60 registered vehicle scrapping facilities and 75 automated testing stations.