India Automakers Offer Discounts for Scrappage

Major automakers in India, including Maruti Suzuki, Tata Motors, Hyundai, and others, have agreed to offer discounts on new vehicle purchases against scrapped old vehicles under the government's Voluntary Fleet Modernization Programme (VVMP). Passenger vehicle manufacturers will provide a discount of 1.5% or up to ₹20,000 for one year, while commercial vehicle manufacturers will offer discounts ranging from 1.5% to 3% for two years. Mercedes Benz will offer a flat discount of ₹25,000 over existing discounts. This initiative, announced by Union Road Transport Minister Nitin Gadkari, aims to promote cleaner and more efficient vehicles on roads and advance India's circular economy. The discounts will be in addition to the scrap value and other normal discounts, and scrapped vehicle details will be linked to the Vahan system. Additionally, the scrappage certificates must be issued within six months prior to purchasing a new vehicle to be eligible for these discounts.