Vehicle Manufacturers Announce Discounts to Promote Scrapping Ahead of Festive Season

New Delhi, Aug 28 (KNN) In a move aimed at advancing fleet modernisation and fostering a circular economy, several leading passenger and commercial vehicle manufacturers have agreed to offer substantial discounts on new vehicle purchases when old vehicles are scrapped.

This announcement follows a significant meeting led by Union Road Transport and Highways Minister Nitin Gadkari at Bharat Mandapam.

The new discount scheme is designed to incentivise vehicle owners to dispose of their outdated vehicles and opt for newer, more efficient models.

Passenger vehicle manufacturers such as Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia Motors, Toyota Kirloskar Motor, Honda Cars, JSW MG Motor, Renault India, Nissan India, and Skoda Volkswagen India will provide a discount of 1.5 per cent of the ex-showroom price or Rs 20,000, whichever is less, for new cars purchased against the scrapping of a vehicle within the last six months.

The discounts will be validated through the Vahan system, with potential additional incentives on select models at the discretion of individual manufacturers.

In the commercial vehicle sector, companies including Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors, and SML Isuzu will offer a discount of 3 per cent on new cargo vehicles exceeding 3.5 tonnes GVW.

A reduced discount of 2.75 per cent will apply for those using a Traded Certificate of Deposit fr0m a scrapped commercial vehicle. The scheme may also extend to buses and vans.

Mercedes Benz India has introduced a special offer of Rs 25,000 off on new vehicle purchases, in addition to existing discounts, further encouraging buyers to take advantage of the scheme.

The initiative, discussed with top industry officials including SIAM President Vinod Aggarwal and Maruti Suzuki India MD & CEO Hisashi Takeuchi, is expected to boost vehicle safety and reduce emissions. The discount offers will be available for a limited period—two years for commercial vehicles and one year for passenger vehicles.

(KNN Bureau)