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Old 27th May 2016, 13:00   #256
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Default re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

The Ministry of Road Transport and Highways has released it's concept paper regarding the Voluntary Vehicle Fleet Modernisation (V-VMP) policy - a program which has been made with the aim of taking off old polluting vehicles from the roads.

This policy will provide incentives to existing vehicle owners who bought their vehicles before March 2005 or are plying around in vehicles which are below BS-IV emission norms.

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Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18-untitled4.gif

Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18-untitled5.gif

Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18-untitled6.gif

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Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18-untitled8.gif

Quote:
The concept note proposes cut in excise tax up to 50 per cent at the time of purchase of new car after scrapping old car, fair value for the scrap and discounts by automobile manufacturers. All these incentives is likely to reduce the cost of a new vehicle for a buyer by 12 per cent. It suggests complete excise exemption for state transport buses to encourage public transport and help decongest roads.

"The decision of excise exemption is to be taken by finance ministry. We'll try convincing them," a senior government official said.

"Voluntary Vehicle Fleet Modernisation (V-VMP) has the potential to reduce the vehicular emission by 25-30 per cent and saving oil consumption by 3.2 billion liters per year. The reducing in oil consumption by new vehicles will help save nearly Rs 7,000 crore in oil import," said the concept note on V-VMP floated by the ministry on Thursday.

According to the concept note, those opting for V-VMP will have to deposit documents relating to the vehicle at the recycling centre. After verification of documents, the owner will get a V-VMP certificate and will get the price for the scrap. Then he has to provide the certificate to the dealer while buying the new vehicle to avail discount.
ET

Link to the V-VMP Concept Paper

Last edited by RavenAvi : 27th May 2016 at 13:12.
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Old 5th June 2016, 11:35   #257
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

The government's Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy is expected to generate over Rs 11,500 crores worth of steel scrap annually.

This will help immensely in reducing India’s import burden on steel and also improve the foreign-exchange reserves.

According to official estimates, over 28 million 10-year old polluting vehicles are currently plying on Indian roads.

Quote:
“In addition to environmental and energy efficiency benefits, the V-VMP would be able to generate steel scrap worth Rs 11,500 crore domestically every year with the set-up of organised shredding centres of which 50 per cent would be generated by MHCVs (buses and trucks),” the government has said in its proposed policy.

Analysis of segment and age of vehicles causing air pollution has shown that MHCVs (Medium & Heavy Commercial Vehicles) constitute just 2.5 per cent of the total fleet but contribute to 60 per cent of pollution.

Besides, the older vehicles, typically more than 10 years of age and pre-BS I compliant, constitute 15 per cent of the total fleet but pollute 10-12 times more than a new vehicle because of drastic change in pollution norms, the government has said.
Financial Express
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Old 5th June 2016, 15:19   #258
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

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Originally Posted by RavenAvi View Post
...This policy will provide incentives to existing vehicle owners who bought their vehicles before March 2005 or are plying around in vehicles which are below BS-IV emission norms...
Does this mean that someone who bought the same car after Mar 2015 wouldn't be eligible for the scheme? I have a 2002 Palio and it'll be completing 15 years in another 7 months. I bought the car in 2014, so am I not eligible for the scheme?

I hope the regulation is based on the age of the vehicle and not the year of ownership

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Originally Posted by RavenAvi View Post
The government's Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy is expected to generate over Rs 11,500 crores worth of steel scrap annually.

This will help immensely in reducing India’s import burden on steel and also improve the foreign-exchange reserves.

According to official estimates, over 28 million 10-year old polluting vehicles are currently plying on Indian roads...
Seems like the analysis & findings are in full throttle. Guess there are more advantages than just curbing pollution. I, as a consumer is quite happy with a possible 12% discount on a new vehicle.
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Old 5th June 2016, 16:13   #259
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

I think given the negligible advantage in scrapping private vehicles (they did not need the expensive and extensive study for this) they are going to be least bothered about this segment. It may hurt us, but has near zero effect on 'the system'. So watch and wait.
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Old 6th June 2016, 00:20   #260
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

As is evident from the graphs and data, there is hardly any difference when it comes to private vehicles while the emission levels are significantly reduced when it comes to commercial vehicles. And yet all the couṛt verdicts are targeting private vehicles?
Am sure if the Government becomes proactive first and all State Transport and Government Buses and Trucks are replaced at say 5 and 10 year intervals, that alone would drop the emission levels significantly more than the entire private vehicles getting scrapped.
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Old 9th June 2016, 09:20   #261
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

The Government's planned V-VMP (Voluntary Vehicular Fleet Modernisation Policy) programme, which will reward incentives on new car buys to people who will voluntarily scrap their old polluting cars, might not extend to those who will be buying fuel-guzzlers!

Cars and UVs which have a fuel economy of less than 14 kmpl (as certified by ARAI) are most likely to be kept out of the V-VMP policy. Which could mean a large chunk of the SUV market & cars with bigger engine displacements could see exclusion from this programme.

The final decision on this particular condition will be taken after the Ministry holds discussions with the stakeholders and gets their feedback.

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Quote:
"Details of the plan are yet to be worked out. However, one thing is certain that the incentives won't be offered on fuel-guzzling cars. Otherwise, the motive of this policy would be defeated," the official said.

"Some minimum threshold of fuel efficiency would be worked out. It could be 13-14 km per litre."

The policy proposes three incentives for scrapping the old car half the regular excise duty at the time of purchase of the new car after scrapping old car, fair value for the scrap and discounts from automobile manufacturers.

These incentives are likely to reduce the cost of a new vehicle for a buyer on an average by 15 per cent.
ET

Last edited by RavenAvi : 9th June 2016 at 09:30.
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Old 10th June 2016, 19:01   #262
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

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Originally Posted by swiftnfurious View Post

I hope the regulation is based on the age of the vehicle and not the year of ownership
Couldn't this lead to loopholes in the system? Eg: I plan to buy a Rs.50 lakh sedan. The excise duty on such a car would be significant. I could find an old cheap car with registration/fitness intact, scrap it and claim for 50% incentive in excise benefits. Although, in such a situation, only the govt stands to loose probable excise revenue. It is win-win for buyer as well as OEM.

It could be lucrative to buy some pre-2005 cheap cars and sell them at a premium to people who want to avail the above loophole.

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Originally Posted by RavenAvi View Post

[/b]Cars and UVs which have a fuel economy of less than 14 kmpl (as certified by ARAI) are most likely to be kept out of the V-VMP policy. Which could mean a large chunk of the SUV market & cars with bigger engine displacements could see exclusion from this programme.
If the objective is to reduce emission levels, this indeed makes sense.
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Old 11th June 2016, 05:12   #263
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

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Originally Posted by avinash_clt View Post
Couldn't this lead to loopholes in the system? Eg: I plan to buy a Rs.50 lakh sedan. The excise duty on such a car would be significant. I could find an old cheap car with registration/fitness intact, scrap it and claim for 50% incentive in excise benefits. Although, in such a situation, only the govt stands to loose probable excise revenue. It is win-win for buyer as well as OEM...
They can always plug it by mandating a minimum ownership period like 2-3 years, before which they cant avail the benefit. Even a 1 year ownership period will deter people from buying an old car for a quick benefit.
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Old 11th June 2016, 07:07   #264
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

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Originally Posted by swiftnfurious View Post
They can always plug it by mandating a minimum ownership period like 2-3 years, before which they cant avail the benefit. Even a 1 year ownership period will deter people from buying an old car for a quick benefit.
Completely agree. A realistic minimum ownership period that will deter people from misusing the system.



I think the voluntary scrapping scheme would be welcomed by all stakeholders , if implemented properly. Except for few models, most of them won't hold residual value more than the discounts that could be availed during purchase of an equivalent new car. If one can't afford to buy a new vehicle, the proposal enables him/her to keep using it, unlike the blanket bans.
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Old 11th June 2016, 11:40   #265
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

I think this will have a cascading impact on the used cars scene. I was shocked to see 15-17 year old Zens quoting 1.5 lakhs in Bengaluru. Even Qualis was commanding good rates, along with Swift.
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Old 11th June 2016, 13:28   #266
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

Man, feeling weird thinking about scrapping my perfectly running car but if the cost saving is substantial I wouldn't mind doing so.
I see the higher segment car you buy after scrapping, the higher one will gain in terms of 50% reduction of excise duty

Any idea how much a 2004 WagonR Lx will get as a scrap amount?
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Old 13th June 2016, 17:16   #267
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

Off-Topic:
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Originally Posted by Sebring View Post
I think this will have a cascading impact on the used cars scene. I was shocked to see 15-17 year old Zens quoting 1.5 lakhs in Bengaluru. Even Qualis was commanding good rates, along with Swift.
Both the cars you mention have a halo on them. They are / were quoted high re-sale value in Bangy always (down South particularly), and partly because Bangy is the most expensive city for buying a car due to the highest taxes in the country.

No, it's not due to the new ban, it's been always like that.

Last edited by swiftnfurious : 13th June 2016 at 17:18.
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Old 13th June 2016, 17:27   #268
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

The system is talking about scrapping cars.The benefit is for the manufacturers than for the customer. Why they had not yet came out with the planning of swapping engines? Also,saw that SUV's will be put out of V-VMP scheme.So what are the owners supposed to do? Old Sierras and Safaris can run with a new heart. Why the paper is silent on that?
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Old 13th June 2016, 19:23   #269
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

Sorry I might have missed this earlier on in the thread. Is this mandatory? I mean what if I have an old vehicle but I do not want to scrap it because I believe it performs great even in the face of modern competition? I really hope not I mean give us a freaking break and let us drive whatever we want to!

Last edited by IshaanIan : 13th June 2016 at 19:28.
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Old 13th June 2016, 20:07   #270
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Default Re: Proposal to ban 15 year old vehicles. EDIT: Concept paper released on page 18

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Originally Posted by commonman View Post
The system is talking about scrapping cars.The benefit is for the manufacturers than for the customer. Why they had not yet came out with the planning of swapping engines? Also,saw that SUV's will be put out of V-VMP scheme.So what are the owners supposed to do? Old Sierras and Safaris can run with a new heart. Why the paper is silent on that?
Too complicated to be performed. Who'll guarantee the reliability for such mods?

I think both manufacturer and owners are benefited. If I get a 12-15% discount on the vehicle, it's a good point, from a customer POV.

Quote:
Originally Posted by IshaanIan View Post
Sorry I might have missed this earlier on in the thread. Is this mandatory? I mean what if I have an old vehicle but I do not want to scrap it because I believe it performs great even in the face of modern competition? I really hope not I mean give us a freaking break and let us drive whatever we want to!
I don't think it's mandatory. The benefits are given to lure those who may be sitting on the fence.
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