Business & Investment

Junk old car gets about 5% rebate from car maker on new purchase: Nitin Gadkari

Consumers trying to junk old cars and buy new ones under the vehicle disposal policy will get a refund of about 5% from the car maker for the new purchase, said federal minister Nitin Gadkari.

The voluntary vehicle disposal policy announced in the 2021-22 United Budget provides for fitness testing of personal vehicles 20 years later, but commercial vehicles require it after 15 years of completion.

“Automakers offer about 5% rebates for new car purchases,” Gakudari told PTI, saying they would offer consumers instead of discarding old ones.

“There are four main components to the policy. Apart from rebates, old contaminated vehicles are subject to green taxes and other levies. These are subject to compulsory fitness and pollution testing in automated facilities. We need it. This automated fitness center is needed all over the country and we are working in that direction, “said Disappointment.

The automated fitness test is set up in public-private partnership mode, he said, and the government will help private partners and state governments dispose of the center.

Driving such a vehicle that did not pass the automated tests would attract enormous penalties and would be imprisoned, the minister said.

The policy will benefit the automotive sector, making it one of the most profitable sectors and thus creating huge jobs, the minister said.

This policy has been touted as a major step in boosting India’s automotive sector and has been adversely affected by the Covid-19 pandemic.

The minister said sales in India’s automobile industry will increase by 30% from now to reach around 4.5 rupees.

Gadkari said: “Currently the sales of the automobile industry of 4.5 rupees could rise to 10 rupees in a few years when India becomes a hub of automobiles.”

This export factor, which is currently 1.45 rupees, will reach 3 rupees, he said, and when the policy is implemented, the availability of scrap materials such as steel, plastic, rubber and aluminum will cost 30 due to the manufacture of auto parts. ~ 40% reduction.

In addition to promoting green fuel and electricity, he said, the policy will boost new technologies with better mileage and reduce India’s huge crude oil import bill of 8 rupees, which is likely to increase to about 18 rupees. Said.

“This policy will increase demand for cars, which will boost profits, and will create a large number of sub-industries and prosper with scrapped cars,” he said. The minister initially said that about 100 million rupees of contaminated vehicles would be scrapped.

Of these, an estimated 510,000 rupees are light vehicles over the age of 20, and an LMV of 340,000 rupees is over the age of 15.

It also covers medium and large vehicles of Rs 170,000, which are more than 15 years old and do not currently have a valid fitness certificate, he said.

He added that it would boost the “Aatmanirbhar Bharat” campaign.

The Ministry of Road Transport has previously stated that older four-seater sedans will cost 1.8 rupees in five years, citing the benefits of disposal, but for large vehicles it will be eight rupees in three years. Will be the year.

“The structure and framework of the disposal policy is currently underway and the green tax has already been notified. Many states have notified in an ineffective way …. Old to the state government through notifications under the Automotive Law. I would advise you to consider imposing a green tax on your vehicle, which causes more pollution. “

The parliament presented a budget for 2021-22, and on February 1, Finance Minister Nirmala Sisaraman said details of the plan would be shared individually by the ministry.

Gackari said the policy would lead to new investment of around Rs 100 billion and create 50,000 jobs.

These vehicles are estimated to cause 10-12 times more pollution than modern vehicles.

The government has previously stated that it plans to impose a green tax on old contaminated vehicles to protect the environment and control pollution, but alternatives to powerful hybrid vehicles, electric vehicles, CNG, ethanol, LPG, etc. Vehicles running on fuel are exempt.

Revenues collected by the green tax will be used for pollution control. Under this system, transport vehicles older than eight years will have a fitness certificate at a rate of 10-25% of the road tax, following a green tax proposal sent to the state for consultation after being approved by the ministry. You may be charged a green tax when you renew.

Industry experts say the policy has fueled the efforts of the Government of India to position India as a global car manufacturing hub, with Japanese giants Suzuki, Toyota, Nissan and other global cars with Indian manufacturing. He said it would benefit the manufacturer.

Junk old car gets about 5% rebate from car maker on new purchase: Nitin Gadkari

https://www.bloombergquint.com/business/junk-your-old-car-and-get-about-5-pc-rebate-from-automakers-on-new-purchase-gadkari Junk old car gets about 5% rebate from car maker on new purchase: Nitin Gadkari

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