New Delhi:With festive season round the corner, leading passenger and commercial vehicle manufacturers have given assurances to the government that they will offer discount deals between 1.5-3 per cent on new vehicle purchase, if the owner had scrapped their old vehicles. The announcement from the auto majors came after they emerged from a meeting with Union Minister for Road Transport and Highways Nitin Gadkari, officials said.
Taking to X, Gadkari wrote: "Chaired a highly productive session of the (Society of Indian Automobile Manufacturers) SIAM CEOs' Delegation Meeting at Bharat Mandapam today, where we addressed various critical issues facing the automobile industry."
He also revealed that the automobile makers accepted his recommendation on offering discounts for the purchase of new vehicles against the scrapping of older vehicles with a valid 'Certificate of Deposit'(Scrappage Certificate). He lauded the initiative bearing a positive impact on "circular economy efforts, ensuring that cleaner, safer, and more efficient vehicles are on our roads". The Minister also thanked the automobile manufacturers who have agreed to participate in Vehicle Fleet Modernization Programme, expressing hope that more will join this endeavour.
‘Top discount from Mercedes’
The highest of the discounts in passenger vehicles was offered by Mercedes Benz India. A statement from the transport ministry said the automobile manufacturer has offered a flat discount of Rs 25,000, in addition to the existing discounts.
Gadkari met with the office bearers from the Society of Indian Automobile Manufacturers (SIAM). The stakeholders and the government side exchanged their views on "pressing issues in the automobile industry", the statement said.
Why offer a discount?
"During this interaction, responding positively to the advice of the minister RT&H and recognising the importance of Fleet Modernisation and Circular Economy, multiple Commercial Vehicle Manufacturers and multiple passenger vehicle manufacturers have agreed to offer discounts for a limited period against a certificate of deposit (Scrappage Certificate)," it said.
How long will this offer be available?
The handout suggested that the commercial vehicle manufacturers were willing to offer discounts for a limited period of up to two years while passenger vehicle makers are willing to offer discounts for a limited period of one year.
The statement noted that these discounts will further incentivise the scrapping of vehicles, thereby ensuring the plying of safer, cleaner and more efficient vehicles on roads.