Union Minister Nitin Gadkari Requests OEMs To Offer Discounts For Scrapping A Car For A New One

Only Renault and Mahindra offer scrappage exchange benefits for now

• The minister has requested OEMs to give offers and discounts to new car buyers if they scrap their old cars in exchange. 

• A discount of Rs 50,000 to Rs 1 lakh is suggested for trucks and buses, but it can be lowered for cars. 

• Renault usually offers a scrappage discount of Rs 10,000, while Mahindra evaluates it on the basis of scrappage value.  

• Mandatory scrappage testing of personal vehicles to commence from June 2024. 

The scrappage policy is well into place and the government is also working on introducing new scrapping centres across the country. However, to encourage more people to follow this process, the Minister of Road, Transport and Highways, Nitin Gadkari, has requested OEMs to offer discounts in case of scrappage exchange. 

Addressing 62nd SIAM Annual Convention https://t.co/QlBTxxXrNW

— Nitin Gadkari (@nitin_gadkari) September 15, 2022

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If the buyers scrap their old car and exchange it for a new one, the OEMs should give some offers and discounts for the good deed. As per the minister, a discount of Rs 50,000 to Rs 1 lakh can be given in cases of trucks and buses, while the amount can be reduced for cars. 

Currently, only Renault and Mahindra have announced to offer a scrappage exchange benefit, usually of Rs 10,000 in the case of Renault. The discount rule, however, won’t be mandatory for the time being. The mandatory scrappage testing of personal vehicles will commence from June 2024. 

Also Read: Car Scrappage Policy: All Your Questions Answered!

As per the scrappage policy, if your vehicle is 15 years or older, an automated fitness test will have to be done. If the car passes the test, then it can be deemed road-worthy after paying the green tax. If not, the car will be illegal to run on roads and will have to be scrapped, mandatorily.