Transport Minister Nitin Gadkari announced during a recent meeting with SIAM that automakers have agreed to give discounts on new automobile purchases if you discard your old vehicle.
But before you get too excited, here’s what you should know:
- According to press reports, the discount against the scrapped vehicle will be either Rs 20,000 or 1.5% of the vehicle’s ex-showroom price.
- The car had to have been scrapped within the previous six months. Should it have been deleted earlier, the discount will not apply to you.
- The promotion is only going to be available for a single, year. Car manufacturers, however, are free to prolong or alter the offer as they see right.
- We’re still expecting formal confirmation from these brands, despite reports indicating that automakers including Maruti Suzuki, Tata, Mahindra, Hyundai, Kia, Honda, Toyota, VW, Skoda, and MG have agreed to offer these reductions.
- According to reports, Mercedes-Benz has consented to a flat discount of Rs 25,000, which is more than the previously stated maximum discount of Rs 20,000.
There are some other incentives for scrapping your old car as well:
- The scrap value offered by the scrapping centers could be as much as 4–6% of the new car’s ex-showroom price.
- New cars will not be required to pay vehicle registration fees.
- Additionally, it is anticipated that state governments will provide motor vehicle tax breaks of up to 25%.
However, only private automobiles that are over 15 years old are eligible for these scrappage advantages. Your car must pass a required fitness test if you want to keep it after 15 years. After making the required repairs, you will be given one more chance to test your car if it fails; if it fails, it will have to be demolished.
