Major automakers announce discounts for 1-2 yrs for vehicle bought against scrapped one – Times of India

NEW DELHI: Major car makers including Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Hyundai Motor, Kia Motors, Toyota Kirloskar, Honda cars, Nissan India, Skoda Volkswagen, Renault and JSW Motor will offer 1.5% discount on ex-showroom price or a maximum of Rs 20,000 of a new vehicle bought against scrapping of an old car for the next one year. Mercedes Benz will give a flat Rs 25,000 discount against a scrapped car.
Similarly, major commercial vehicle manufacturers, including Tata Motors, Volvo Eicher, Ashok Leyland, Mahindra & Mahindra, Force Motors and SML Isuzu will give 1.5-3% discount on the ex-showroom price for a commercial cargo vehicle against a scrappage certificate of an old vehicle.The companies will give this discount for two years.
The automakers agreed to offer such discounts at a meeting of Union road transport minister Nitin Gadkari with SIAM CEO’s delegation on Tuesday. Announcing the decision, Gadkari said, “I am pleased to report that, in response to my recommendation, several commercial and passenger vehicle manufacturers have agreed to offer discounts for the purchase of new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit. This initiative will significantly advance our circular economy efforts, ensuring that cleaner, safer, and more efficient vehicles are on our roads.”
In both cases, the discounts will be in addition to the scrap value paid by registered scrappage centres and any normal discounts offered by the companies. The scrappage certificates or Certificates of Deposit issues within the previous six months of buying a new vehicle will be entertained by the vehicle manufacturers to offer the discount.
Officials said the details of the scrapped vehicle will be linked in the Vahan system and companies may voluntarily offer additional discounts on identified models.
“As the car is not getting exchanged but only scrapped, hence between exchange and scrap discount, only scrappage discount will be applicable,” a source said.
In the case of commercial goods vehicles, 3% discount will be for those weighing more than 3.5 tonne such as trucks and 1.5% for those weighing less than 3.5 tonne. Since the govt has allowed trading of scrappage certificates, a person buying a new goods vehicle against a ‘Traded Certificate of Deposit’ would get 2.75% discount and 1.25% for buying a cargo vehicle with more than 3.5 tonne and less than 3.5 tonnes of gross vehicle weight respectively.