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How will scrappage policy help auto sector?
Jan 26, 04:01

There are far too many vehicles on Indian roads that are well past their sell-by date. They are grave polluters. To get them off the road and boost demand for new vehicles, the government in mid-2019 first proposed a scrappage scheme. It would be the end of the road for vehicles which are older than 15 years, per the proposal. But there has been no clarity on the vehicle segments—passenger or commercial—or the categories the scheme would cover. Demand recovery in commercial vehicles has been sluggish and so this segment would benefit from the scrappage scheme. Passenger car and two-wheeler segments, on an upswing since the past quarter, too would not complain.

Scrappage gfx - Jan 26