You might get a discount on your new car if you scrap the old one. Why? Nitin Gadkari, the Union Minister for Road Transport & Highways, chaired a meeting with various personnel from OEMs of passenger and commercial vehicles to ask manufacturers to give discounts to users who are scrapping their used vehicles. This meeting, held in the Bharat Mandapam with the Society of Indian Automobile Manufacturers (SIAM), was deemed successful, as the OEMs agreed with the minister.
How Much Discount Will Your Next Car Get?
As per reports, the major Car OEMs have agreed to give either 1.5 per cent of the ex-showroom price of a new car or Rs 20,000, whichever amount is less. This applies to customers who have scrapped a car in the last 6 months. The catch is that the details should be updated in the Vahan system. The company can decide to give even higher discounts for their models. This includes Maruti Suzuki, Tata, Hyundai Motors, Mahindra & Mahindra, Kia, Renault India, Honda, Toyota, JSW MG Motor, Nissan India, Skoda and Volkswagen India.
How Much Discount Do Commercial Vehicles Get?
Companies in the commercial vehicle business have decided to offer a 3 per cent discount on ex-showroom prices for vehicles over 3.5 tonnes. Vehicles weighing less than 3.5 tonnes will receive a 1.5 per cent discount. The companies that will offer this discount include Tata Motors, Mahindra & Mahindra, Ashok Leyland, Volvo Eicher Commercial Vehicles, SML Isuzu Force Motors, and Isuzu Motors.
How To Get A Scapage Certificate
You can get a Certificate of Deposit, known popularly as a scrappage certificate, which will be issued to vehicle owners when a used vehicle is scrapped at an authorised scrappage centre. To get it, you will have to take your old car to a certified scrapping facility. Once the scrapping process is done, you will get a scrappage certificate.
What The Minister Said
In his X (Twitter) post about the matter, Nitin 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.”
He added, “Congratulations and gratitude to the automobile manufacturers who have taken the initiative to participate in our Vehicle Fleet Modernization Programme. I trust that others will soon follow their lead and join us in this important endeavour.”
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