Home Industry Speaks Industry hails scrappage policy

Industry hails scrappage policy

The following is the edited version of industry reactions to the outlines of scrappage policy announced on March 18: 

“SIAM welcomes the concept and outline of scrappage policy being implemented for the first time in India. The benefits to environment and safety of a sound system of removing unsafe or unfit vehicles from the road have been felt strongly by all stakeholders. The most important step is to build an infrastructure of testing and scrapping centers fast all over the country and SIAM will work on this front with the Government. Mandatory scrapping of over 15-year-old Government vehicles from April 1, 2022 is a step in the right direction.”

Society of Indian Automobile Manufacturers (SIAM)

“The guidelines and advice announced are in the right direction and now, the state Governments and OEMs have to do their part to make it a success. Scrappage value of vehicle in range of 4-6 pc of the ex-showroom price, rebate of up to 25 pc for PV and 15 pc for CV by state governments on road tax, 5 pc discount from OEM’s on new vehicle and registration fee being waived of will definitely help to excite the customer and motivate him to scrap his old vehicle. It will also revive the ailing CV segment and in turn will boost the state exchequer’s revenue on sale of new vehicles.”

Mr. Vinkesh GulatiPresident, FADA

“Notwithstanding the lower demand from the aftermarket segment, ICRA expects that the scrappage policy will be positive for the auto component industry and it will benefit from higher demand for new vehicles from FY2024 onwards (with 3-4 pc upside) owing to a favourable incentive structure. The same will more than offset the loss of revenues from the aftermarket business, which may be pegged at 3-5 pc because of part scrapping of vehicles undergoing the fitness test. Further, the policy will also improve raw material availability through metal recycling and aid in reducing imports.”

Ms. Vinutaa SAssistant V-P, ICRA

“DICV has long advocated for a well-designed, incentivized ‘end of life’ policy that boosts demand, improves safety, and supports the environment by encouraging CV owners to exchange their older vehicles for new ones, meeting current emissions norms. Only a joint effort by Government, industry and the customer can result in a scrappage policy that offers true safety, economic and environmental benefits.”

Mr. Satyakam AryaMD & CEO, DICV

“This is indeed a historic moment in the automotive sphere and will go a long way in setting new benchmark for India in the global context. We are on the cusp of a major breakthrough in the industry; firstly we saw advanced emission standards being adopted by the sector and now a move that is momentous on multiple fronts. Besides presenting a huge business opportunity for the OEMs, the social impact of this move will be revolutionary, employment generation, significantly reducing pollution and bolstering road safety are just a few amongst many.”

Mr. Venkatram Mamillapalle

Country CEO & MD, Renault India

“We welcome the announcement on vehicle scrapping policy. This incentive-led announcement will lead to reduction in the pollution levels in the long run and boost the demand for new and environment-friendly vehicles, especially in the personal mobility segment. The strong incentive scheme will motivate consumers towards sustainable mobility solutions that can help the Government meet its set EV target by 2030.”  

Mr Nagesh BasavanhalliGroup CEO & MD, Greaves Cotton

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