Eicher Trucks and Buses, a business unit of VE Commercial Vehicles, on August 29 said it has launched a programme to incentivise customers for scrapping old vehicles to purchase new trucks and buses, days after a similar suggestion from India's road transport minister.
Under the terms of the scheme, buyers of new vehicles holding a valid 'Certificate of Deposit' from any recognised scrappage center can receive incentives ranging between 1.25 percent to three percent of the base vehicle cost of a vehicle with payload or seat capacity equivalent to the scrapped unit, the company, a part of Eicher Motors, said in a statement.
In case equivalent vehicles are not available, it would be possible for customers to purchase trucks or buses with immediate higher or lower tonnage or seating capacity, it added.
The programme is valid from September 1, 2024, and will run for a period of 2 years or until further notice, Eicher Trucks and Buses stated.
On August 27, Nitin Gadkari, minister of road transport & highways and the longest-serving cabinet minister under Prime Minister Narendra Modi administration, said commercial and passenger vehicle manufacturers have agreed to offer discounts for the purchase of new vehicles against the scrapping of older vehicles.
"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."
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"The forward-looking Vehicle Scrappage Policy by the government represents a transformative step towards promoting a circular economy and encouraging the use of cleaner and safer vehicles," VE Commercial Vehicles (VECV) MD and CEO Vinod Aggarwal said in a statement.
VECV is fully-aligned with the policy, and the initiative aims to incentivise operators of old vehicles of any brand to transition into Eicher’s range of modern, safer and environmentally friendly vehicles, he added.
(With PTI inputs)
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