Union Minister of Road Transport and Highways Minister Nitin Gadkari on Tuesday met representatives of the auto industry and suggested that manufacturers offer better discounts and deals to customers for opting to purchase vehicles with scrap certificates, in a bid to promote the central scrappage policy.
The auto industry representatives accepted the suggestion.
As agreed upon, several auto manufacturers agreed to offer limited-period discounts, with passenger vehicle (PV) makers willing to offer discounts for one year and commercial vehicle (CV) makers for two years.
The discounts will be of the magnitude of up to 3 per cent on ex-showroom prices in case of heavy CVs and up to 2.75 per cent in case of smaller CVs.
In the passenger vehicle segment, the discounts will be up to 1.5 per cent.
The Road Transport and Highways Ministry has introduced a scrappage policy to promote and incentivise the scrapping of old, unfit, and polluting motored vehicles, and to establish registered vehicle scrapping facilities (RVSFs).
