Junk your old car and get 5% rebate from automakers on new purchase: Gadkari

[Ryzen_renoir]

There is good news for consumers who are going to junk their old vehicles and buy a new one under the Vehicle Scrapping Policy as automakers will give about 5% rebate on the new purchase, Union minister Nitin Gadkari has said.

The voluntary vehicle scrapping policy announced in the Union Budget for 2021-22 provides for fitness test after 20 years for personal vehicles while commercial vehicles would require it after the completion of 15 years.

Automobile manufacturers will provide about 5% rebate on new car purchases" to the consumers in lieu of scrapping of the old, Road Transport, Highways and MSMEs Minister Gakdari told PTI.

"There are four major components of the policy...Apart from rebate, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities. For this automated fitness centres would be required through out in the country and we are working in that direction," Gadkari said.

Automated fitness tests will be set up under public private partnership (PPP) mode while the government will assist private partners and state governments for scrapping centres, he said.

Driving such vehicles that fail to pass automated tests will attract huge penalties and also be impounded, the minister said.

This policy is going to be a boon for the automobile sector, making it one of the most profitable sectors which in turn would generate huge employment, the minister said.

The policy is touted as a major step to boost the Indian automobile sector, reeling under the adverse impact of the COVID-19 pandemic.

The voluntary vehicle scrapping policy announced in the Union Budget for 2021-22 provides for fitness test after 20 years for personal vehicles while commercial vehicles would require it after the completion of 15 years

An estimated 51 lakh will be light motor vehicles (LMVs) that are above 20 years of age and another 34 lakh LMVs that are above 15 years.

It would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years, and currently without valid fitness certificates, he said.

It will give a boost to 'Aatmanirbhar Bharat' campaign, he added.

Listing the advantages of scrapping, the Road Transport and Highways Ministry had earlier said that an old four-seater sedan will result in a loss of ₹1.8 lakh in five years while for a heavy vehicle it comes to ₹8 lakh for a period of three years.

[Ryzen_renoir]

Dumbasses , those who are using 20 year old vehicles are using them not because they like driving old broken down vehicles but because they can't afford anything new . 

It would have been good if they had standalone rebate but compulsary testing and green tax will break the back of many poor people

Poor people are going to get harassed by RTO , police officials because of this policy to bring short term benefit to auto industry corporates 

[Yuvasamudram]

3 hours ago, Ryzen_renoir said:

Dumbasses , those who are using 20 year old vehicles are using them not because they like driving old broken down vehicles but because they can't afford anything new . 

It would have been good if they had standalone rebate but compulsary testing and green tax will break the back of many poor people

Poor people are going to get harassed by RTO , police officials because of this policy to bring short term benefit to auto industry corporates 

You can afford EMI for the new vehicle for the money you spend on the repairs and inefficiency.

[Ryzen_renoir]

1 minute ago, Yuvasamudram said:

You can afford EMI for the new vehicle for the money you spend on the repairs and inefficiency.

Do you even understand that a person using a 20 year old vehicle will not even be approved for any loan ? 

I am talking about people with no assets , no credit history . 

No one will keep a 20 year old vehicle running if they had a choice