You are currently viewing Discount talks against scrapped vehicles in works: Nitin Gadkari

Discount talks against scrapped vehicles in works: Nitin Gadkari

Union road transport and highways minister Nitin Gadkari has held discussions with the finance ministry for offering discounts to incentivize voluntary scrapping of end-of-life vehicles, he said at a gathering of automotive industry stakeholders at the inauguration ceremony of Auto Expo 2023 on Thursday.

“The finance minister has talked about the importance of building a circular economy in her economic policy. A scrappage policy is an important aspect of this. Using materials from scrapped vehicles can yield 33% reduction in the raw material cost and 10-12% boost in sales because of the benefit of GST that the government offers. We are trying to get discount from the finance ministry, but I request automotive manufacturers to give some discount for purchases against a scrapped vehicle,” he added.

India is now the third-largest automotive market in the world, and has the potential to become the biggest within five years, Gadkari said.

The day was also marked by the launch of two new SUVs from the Maruti Suzuki stable—Baleno-based coupe Fronx and five-door Jimny which will exclusively be made in India for both the domestic and export markets.

In line with the Auto Expo’s focus on alternative fuel technologies, MG Motor India showcased the EUNIQ 7, the world’s first multi-purpose vehicle powered by a hydrogen fuel cell, while net-zero commercial vehicle company Switch Mobility displayed its electric mini-bus, the EiV7, designed to meet applications such as metro feeders, staff, school and campus shuttles.

Innovative tech and product showcases dominated the mood at the Expo, with Liger Mobility putting on display the first self-balancing bike and SUN Mobility unveiling new battery swapping technology.

“This edition of Auto Expo captures the transition auto industry is going through – the absence of some large OEMs in both startups and legacy space points to the fact that many are still working on products oriented for a more electric future and therefore have decided to keep out in the interim. The next edition of the Expo will see far more of these products come to life,” said an industry executive, seeking anonymity.

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