Indian automobile manufacturers have agreed to offer discounts ranging 1.5-3 percent on purchase of new vehicles against scrapping of old ones, according to a government statement following a meeting between automobile companies and ministry of roads and highways on Thursday, August 29.
The statement said Mercedes Benz India has offered a flat discount of INR 25,000 ($298), which will be over and above all existing discounts.
“During this interaction, responding positively to the advice of the ministry and recognising the importance of fleet modernisation and circular economy, multiple commercial vehicle manufacturers and multiple passenger vehicle manufacturers have agreed to offer discounts for a limited period against a certificate of deposit (Scrappage Certificate),” the statement said.
It said commercial vehicle manufacturers are willing to offer discounts for a limited period of two years and passenger vehicle manufacturers are willing to offer discounts for a limited period of one year.
As per the statement, passenger vehicle manufacturers namely Maruti Suzuki India Ltd, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia Motors, Toyota Kirloskar Motor, Honda Cars, JSW MG Motor, Renault India, Nissan India and Skoda Volkswagen India, will offer discount of 1.5 percent of the ex-showroom price of new car or INR 20,000 ($238), whichever is less, against the passenger vehicle scrapped by the owner in the last six months.
Commercial vehicle manufacturers namely Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors and SML Isuzu, will offer discount equivalent to three percent of the ex-showroom price for a commercial cargo vehicle of more than 3.5 tonne, the statement said.