Automotive sector has hailed the Centre’s move to bring in voluntary vehicle scrapping policy to phase out old and unfit vehicles. Vehicles would undergo fitness tests after 20 years in automated fitness centres in the case of personal vehicles (PV), and after 15 years in the case of commercial vehicles (CV). Details of the scheme will be shared separately by the Ministry.
Kenichi Ayukawa, President, Society of Indian Automobile Manufacturers (SIAM), described the Budget as “visionary”.
“The government has adopted an expansionary stance with a thrust on infrastructure building with measures for efficiency improvement and increasing competitiveness. Good macroeconomic growth will translate to good auto sector demand. Specifically, the vehicle scrappage scheme has a good intent and the auto industry would be keen to work with the government on suggestions for maximising benefits to environment and society,” he said to The Hindu.
Welcoming the voluntary vehicle scrapping policy, Federation of Automobile Dealers Associations president Vinkesh Gulati said, “If we take 1990 as base year, there are approximately 37 lakh commercial vehicles (CV) and 52 lakh passenger vehicles (PV) eligible for voluntarily scrappage. As an estimate, 10% of CV and 5% of PV may still be plying on the road.”
Vipin Sondhi, MD & CEO, Ashok Leyland Limited, said that the implementation of a voluntary scrappage policy is good for the environment and good for setting in motion a circular economy. However, we await further details of the policy as the industry had requested an incentive-based scrappage policy for it to be effective, he said.
