New Delhi, August 28: Union Minister of Road Transport and Highways, Nitin Gadkari, announced that automakers will offer discounts to customers purchasing new vehicles after scrapping their old vehicles. The initiative is expected to promote reducing environmental pollution and improving road safety. Passenger and commercial vehicle manufacturers are said to be on board to offer discounts on new vehicle purchases when you trade in your old vehicle with a valid Certificate of Deposit.

As per a report of Moneycontrol, automakers have decided to offer discounts to individuals who choose to scrap their old vehicles in exchange for purchasing a new one. The agreement came after a meeting with key automakers, indicating a step towards advancing the government's Circular Economy efforts, as per a report of Business Line. Union Minister Nitin Gadkari Announces Passenger and Commercial Vehicle Manufacturers Agree To Offer Discounts for Purchase of New Vehicles Against Scrapping of Older Ones.

Scrapping Policy and Discount Details

The policy for scrapping old vehicles and purchasing new vehicles includes specific terms and discounts. According to reports, the Ministry of Road Transport and Highways (MoRTH) said, that commercial vehicle and passenger vehicle manufacturers have agreed to offer these discounts against a Certificate of Deposit, also known as a Scrappage Certificate.

As per reports, if a customer trades a scrapped commercial vehicle with a gross vehicle weight (GVW) of more than 3.5 tonnes, they will receive a discount of 2.75 per cent of the ex-showroom price when purchasing a new vehicle. For a scrapped commercial vehicle with a GVW of less than 3.5 tonnes, the discount will be 1.25 per cent of the ex-showroom price. According to reports, commercial vehicle manufacturers including Tata Motors, Mahindra & Mahindra, Ashok Leyland, Volvo Eicher Commercial Vehicles, Force Motors, Isuzu Motors, and SML Isuzu, will provide a discount of three per cent of the ex-showroom price for commercial vehicles weighing more than 3.5 tonnes. Bhavish Aggarwal-Run Ola Electric Share Prices Drop 25% From Record High in 5 Trading Sessions Leaving Investors Jittery Amid Profit Booking, Broader Market Volatility.

As per esports, Mercedes-Benz has already announced a standard discount of INR 25,000 for customers who buy their cars after scrapping their old vehicles. State governments are also showing interest in recycling and some states offering a discount of 25-30 per cent on road tax for recycled cars. Multiple automakers, including Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Hyundai, Kia, Honda, Toyota, JSW MG Motor, Renault, Nissan, and Skoda Volkswagen, will provide a discount of 1.5 per cent or INR 20,000 (whichever is less) on the new car's ex-showroom price for owners who have scrapped their passenger vehicle within the last six months.

(The above story first appeared on LatestLY on Aug 28, 2024 12:52 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).