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Business News/ Auto News / Gadkari seeks support from all stakeholders for vehicle scrapping policy
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Gadkari seeks support from all stakeholders for vehicle scrapping policy

He said the auto OEMs should work towards increasing their production capacity and support the nation to become the largest auto industry in the world

Gadkari seeks support from all stakeholders for vehicle scrapping policy. Photo by Aniruddha Chowdhury/MintPremium
Gadkari seeks support from all stakeholders for vehicle scrapping policy. Photo by Aniruddha Chowdhury/Mint

Union Minister for Road Transport and Highways Nitin Gadkari called upon all stakeholders to come forward and support the vehicle scrapping policy as it is a win-win situation for all.

Addressing a stakeholder consultation in New Delhi on Monday, he said the ministry has undertaken multiple initiatives to build resilient demand for vehicles such as building a world-class network of highways, electrification of buses, and mandatory automated fitness testing of vehicles.

He said the auto OEMs should work towards increasing their production capacity and support the nation to become the largest auto industry in the world.

Gadkari emphasised that since the auto industry is the biggest beneficiary of this policy, they must come forward and support the three main pillars of more investment in setting up automated testing stations (ATSs) and registered vehicle scrapping facilities (RVSFs), more awareness amongst citizens about the policy benefits through their dealer network and a finalised discount against A certificate of deposit obtained by citizens on scrapping vehicles.

Secretary Anurag Jain encouraged the auto industry to set up scrap centres and automated testing stations across the country. It was emphasized that the vehicle scrapping policy is expected to increase auto sales by about 8% and contribute about 0.5% to the country’s GDP. Thus, auto OEMs must extend unconstrained support to the policy.

This stakeholder consultation aimed to seek support from the automobile industry to expedite the implementation of vehicle scrapping policy in the form of investment in vehicle scrapping infrastructure of RVSFs and ATSs, generation of awareness among citizens and extension of discounts to vehicle owners for scrapping vehicles at RVSFs.

Representatives from all major automotive OEMs including Tata, Mahindra, Maruti, Kia, Hyundai, etc., auto dealers and used car aggregators including Car Dekho and Cars24 attended the event and shared their perspectives on the challenges and actions required to expedite the implementation of the vehicle scrapping policy.

The Ministry of Road Transport and Highways (MoRTH) launched the Voluntary Vehicle-Fleet Modernization Program (Vehicle Scrapping Policy) in 2021. This policy is aimed at creating an ecosystem for phasing out old, unsafe, polluting vehicles and replacing them with newer, safer, and fuel-efficient vehicles.

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Published: 25 Sep 2023, 06:47 PM IST
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