Union Minister for Road Transport and Highways, Shri Nitin Gadkari, urged all stakeholders to actively support the Vehicle Scrapping Policy during a Stakeholder Consultation held in New Delhi. He emphasized that this policy is mutually beneficial for everyone involved. Shri Gadkari highlighted several initiatives undertaken by the Ministry to stimulate demand for vehicles, including the development of a world-class highway network, electrification of buses, and the implementation of mandatory automated vehicle fitness testing. He called upon Auto Original Equipment Manufacturers (OEMs) to ramp up their production capacities and contribute to making India the world’s largest auto industry.
Shri Gadkari underscored the auto industry’s significant role in this policy and urged them to focus on three critical aspects: increasing investments in setting up Automated Testing Stations (ATSs) and Registered Vehicle Scrapping Facilities (RVSFs), spreading awareness about the policy benefits through their dealer networks, and finalizing the discount percentage offered to citizens for scrapping their vehicles.
Secretary Shri Anurag Jain encouraged the auto industry to establish scrap centers and automated testing stations nationwide, highlighting that the Vehicle Scrapping Policy is expected to boost auto sales by approximately 8% and contribute about 0.5% to the country’s GDP. He stressed the need for Auto OEMs to provide unwavering support to the policy.
The objective of this stakeholder consultation was to garner support from the automobile industry to expedite the implementation of the Vehicle Scrapping Policy. This includes investments in vehicle scrapping infrastructure, generating awareness among citizens, and extending discounts to vehicle owners who choose to scrap their vehicles at RVSFs. Representatives from major automotive OEMs such as Tata, Mahindra, Maruti, Kia, Hyundai, as well as auto dealers and used car aggregators like Car Dekho and Cars24, attended the event. They shared their insights regarding the challenges and necessary actions to accelerate the policy’s implementation.
Additional Secretary Shri Mahmood Ahmed welcomed the dignitaries and industry participants, highlighting the key benefits of the Vehicle Scrapping Policy. This was followed by a presentation on the status of the policy and the support required from the auto industry, presented by Director Shri Paresh Goel. The Society of Indian Automobile Manufacturers (SIAM) also presented their views on the incentives provided to citizens through this policy, and valuable inputs were received from other auto industry stakeholders.
The Ministry of Road Transport and Highways (MoRTH) introduced the Voluntary Vehicle-Fleet Modernization Program (Vehicle Scrapping Policy) in 2021. The primary aim of this policy is to create an ecosystem for phasing out old, unsafe, and polluting vehicles while replacing them with newer, safer, and more fuel-efficient ones.
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