Road transport minister Nitin Gadkari has called upon the auto industry to invest in automated testing centres and registered vehicle scrapping facilities. By doing so, he believes that automotive sales in the country will increase, resulting in economic benefits and encouraging individuals to opt for vehicle scrapping.
During a stakeholder consultation on vehicle scrapping, minister Gadkari emphasized the importance of industry support for the vehicle scrapping policy. He stated that it is a win-win situation for all parties involved.
In a statement released by the ministry, Gadkari highlighted the three main pillars of the policy that the auto industry should focus on: setting up automated testing stations (ATSs) and registered vehicle scrapping facilities (RVSFs), raising awareness about the policy benefits through dealer networks, and determining a discount rate for individuals who scrap their vehicles at designated centers.
The government introduced the Voluntary Vehicle-Fleet Modernization Program (Vehicle Scrapping Policy) in 2021 to replace old, unsafe, and polluting vehicles with newer, safer, and fuel-efficient ones.
Gadkari reiterated the benefits of the policy, stating that it is expected to boost auto sales by around 8% and contribute 0.5% to the country’s GDP. He urged original equipment manufacturers (OEMs) in the automotive sector to fully support the policy.
Representatives from major automotive OEMs, auto dealers, and used car aggregators attended the stakeholder consultation event and shared their perspectives on the challenges and actions needed to expedite the implementation of the vehicle scrapping policy.
The consultation aimed to seek industry support in infrastructure creation and generating awareness among vehicle owners.
Gadkari also mentioned that the government has taken various initiatives to stimulate vehicle demand, such as creating a world-class highway network, electrifying buses, and implementing mandatory automated fitness testing for vehicles. He encouraged auto OEMs to increase their production capacity and support the nation in becoming the largest auto industry globally.
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