Scrap your old car & save big: Gadkari unveils new discount plan for new car buyers

Auto majors are likely to offer 1.5-3.5 percent discount to buyers who scrap their old vehicles and buy a new one.

Several commercial and passenger vehicle manufacturers will offer discounts for buying new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit, Minister of Road Transport & Highways Nitin Gadkari said on August 27.

Gadkari chaired a productive session of the (Society of Indian Automobile Manufacturers) SIAM CEO’s delegation meeting at Bharat Mandapam, New Delhi where he addressed critical issues faced by the automobile industry.

Taking to X, 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 then congratulated and expressed gratitude to the automobile manufacturers who took the initiative to participate in the Vehicle Fleet Modernization Programme.

According to a report in The Times of India, auto majors are likely to offer 1.5-3.5 percent discount to buyers who scrap their old vehicles to buy a new one.

Some of the top luxury car manufacturers have agreed to a discount of around Rs 25,000 while others are expected to put a ceiling on the maximum amount, report added citing sources.

Moneycontrol couldn't independently verify the TOI report.

SIAM President Vinod Aggarwal in July had said, "We are expecting that the government could do something more on the incentives for the scrapping of vehicles, because the scrappage policy is already in place but we have not seen much impact of that.

He further said, "And so therefore, to give further boost to the scrapping of old polluting vehicles, I think something needs to be done." Aggarwal said the government should continue to take initiatives which are good for the economy.

Also Read | Govt vehicles older than 15 years to be scrapped, deregistered: Road transport ministry