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Old 13th August 2015, 18:40   #1
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Default Govt plans incentives for surrender of old vehicles

The Govt. may be considering giving financial incentives of up to Rs 1.5 lakh on surrender of over-ten-year-old vehicles to check pollution and address road safety concerns. This comes in light of National Green Tribunal (NGT) ban of diesel vehicles which are more than ten years old in the national capital region.

The benefits will range from Rs. 30,000/- for smaller vehicles like private cars to Rs. 1.5 lacs for commercial vehicles like trucks & buses.

A proposal to formulate the new incentive policy for surrendering old vehicles is being worked out and would be soon sent for the finance ministry's approval.

In my view, an incentive of Rs. 30,000/- for private car owners would be a petty sum to help the cause. A concrete policy is yet to be rolled out and the terms & conditions are not yet defined. So, let us wait for the developments to check if this helps out the common man out there with a 10 year plus vehicle.

Link to news: http://timesofindia.indiatimes.com/h...w/48469696.cms

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Old 13th August 2015, 21:12   #2
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Default re: Govt plans incentives for surrender of old vehicles after NGT ban

Our 16 year old M800 runs like a charm without a hint of smoke or hesitation. With our level of usage, I expect it to last another decade. There is no way in hell I'd be trading that for Rs.30000 Age-based phasing out is really really stupid.

Cops randomly pull up vehicles to check for drunk driving. Why can't we have a squad that does random pollution checks and scrap / fine cars that fail to comply with the pollution norms? Isn't that cheaper for the exchequer than providing incentives ?
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Old 13th August 2015, 21:42   #3
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Default re: Govt plans incentives for surrender of old vehicles after NGT ban

This move will negatively impact the pre owned car market. One of thing is that manufacturing will increase, but people like me would prefer to hold the car for complete ten years in other terms ownership period will increase, which can also decrease the demand in long run.

APart from domestic OEMs, Honda will be impacted the most.

Utter stupid policy!!!!
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Old 13th August 2015, 22:12   #4
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I somehow agree with the intention behind the move. Yes the amount involved is debatable and there can't be a straight formula to it, but it is movement in the right direction. In my opinion, it should not be restricted to only diesel vehicles but to petrol cars, bikes, scooters, auto etc. This 10 year can also be debatable as I feel it should be in phases. Example all vehicles registered before 1995 should be the one to be scrapped on day 1. Another one year and this deadline can be revised to 2000 n before and so on.
Putting the onus on cops will do no good as we know even z highly polluting vehicle can nicely getaway by showing some crisp notes.
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Old 13th August 2015, 22:30   #5
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This kinds of schemes have been going on in various countries and there are many oppositions too.
https://en.m.wikipedia.org/wiki/Vehi...rappage_scheme
https://en.m.wikipedia.org/wiki/Scrappage_program
Some of the vehicles spew out so much smoke that you feel like a smoke bomb was dropped. How effective will it be, bit apprehensive. Still some will be tempted to change. Something is better than nothing.
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Old 14th August 2015, 12:27   #6
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Default Re: Govt. plans incentives for surrender of old vehicles after NGT ban.

Quote:
Originally Posted by hellmet View Post
Our 16 year old M800 runs like a charm without a hint of smoke or hesitation. With our level of usage, I expect it to last another decade. There is no way in hell I'd be trading that for Rs.30000 Age-based phasing out is really really stupid.

Cops randomly pull up vehicles to check for drunk driving. Why can't we have a squad that does random pollution checks and scrap / fine cars that fail to comply with the pollution norms? Isn't that cheaper for the exchequer than providing incentives ?
Hellmet, the issue is that old vehicles, even though may not cough up smoke, still may release high amount of NOx pollutants. Which is somewhat linked to the NGT fatwa (who are after the smoke/smog pollution).

But I am with you on the point about monitoring the real time pollution instead of having a stupid age based cut off.
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Old 14th August 2015, 12:47   #7
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Default Re: Govt plans incentives for surrender of old vehicles after NGT ban

This, in other words mean that a car that is 6 lakh now, can mean 30K or nil at the end of 10 years. So, the cars will lose its value faster, and the depreciation will be harder in the early years.
This also means that a well looked after car, will atmost have one or two owners and then it will be sent to scrapyard.
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Old 14th August 2015, 13:42   #8
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Default Re: Govt plans incentives for surrender of old vehicles after NGT ban

They need to give some real good incentives to owners for letting go of 10+ year old cars. 30k is a paltry sum. No one will opt for it. A car sold to a scrap dealer will fetch between 20-25 depending on the weight.

In the western countries, the cost of new cars vis-a-vis the monthly average income is not much. One can buy a car with a 3 month salary. That is not the case in India and hence, the 30k incentive is too less for a owner to part ways with his car. Though the low incentives might be effective in western countries.

Maybe the government to give 50% rebate in in the total taxes + registration collected on the new car to the owner who accepts to scrap his car may be a good incentive. This can reduce at least a Lakh from the Modest Alto's OTR, as per my approximation.
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Old 14th August 2015, 14:35   #9
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Default Re: Govt plans incentives for surrender of old vehicles after NGT ban

Basically, the Government is returning the road tax of the remaining 5 years of your diesel car, had it been allowed to ply on roads beyond ten years. Thus, virtually speaking, this doesn't turn out to be any kind of an incentive.
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Old 15th August 2015, 12:02   #10
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Default Re: Govt plans incentives for surrender of old vehicles after NGT ban

Im sorry but I have a different opinion on the subject. A car has 'N' number of components of which its the engine which is the core unit responsible for pollution. Why ban an entire car instead of giving the customer the option of upgrading or changing the car's engine. All other parts like the chassis, body panels, seats etc have nothing to do with pollution. If I have an Alto bought in 2005 which is in good overall condition and not sell/scrap worthy why cant I just go to Maruti and buy a new engine/half engine. which meets today's pollution norms. Here the govt incentive would work better as the cost of changing the engine is lesser compared to buying an entire new car.

The other point that would come out would be that new cars would be safer than 10 year old cars. Here again, what if I bought an i20 in 2005 top-end with 6 airbags + ABS etc which is still safer to drive than a 2015 model Nano/Alto without any safety kit.

If I have a 7 speaker home theater music system and 1 speaker is bad and causing a few problems, I don't go and buy an entire new home theater system.
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Old 15th August 2015, 12:09   #11
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What if I sell the car outside the National Capital where the NGT ban is not in force? That way I would be able to fetch a better resale value for my car!
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Old 15th August 2015, 17:48   #12
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Default Re: Govt plans incentives for surrender of old vehicles after NGT ban

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Originally Posted by Warwithwheels View Post
What if I sell the car outside the National Capital where the NGT ban is not in force? That way I would be able to fetch a better resale value for my car!
The Delhi RTO would probably confiscate your RC book and/or not issue you an NOC for transfer of vehicle to different state. The Meerut RTO has already stopped re registering ten year old diesel vehicles irrespective of NGT decision.
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Old 16th August 2015, 18:29   #13
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Default Re: Govt plans incentives for surrender of old vehicles after NGT ban

How would something like this impact diesel car sales?

For e.g., I am in the market for a new car and have shortlisted a few cars with the Vento TDI at the top of the list. I also plan to keep my next car with me for a long time ; should this kind of (IMO ridiculous since its age based and not PUC based) policy impact my decision making?

No body can predict for sure what happens in 6-8 years and how these policies take shape in other parts of the country - but we are seeing some changes; so should one guard oneself and play safe with a petrol car instead if the usage is borderline ?
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Old 22nd September 2015, 21:09   #14
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Default Re: Govt plans incentives for surrender of old vehicles after NGT ban

During display of Honda car near my office, the sales person confirmed that Diesel cars are being registered for 15 years. No such 10 year thing!
Same was also confirmed by a dealer in Bhikaji Kama Place , New delhi over phone.

Has anybody really tried extending registration after 15 years with Delhi RTO. The same dealer told me that same is also possible as nothing has been changed in in rules for RTO. However he mentioned that it is only done thru "2 number."
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Old 3rd March 2016, 13:50   #15
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Default 15% discount on new vehicles if you junk your old ones

Now this is something that was long overdue. There is a proposal that government will issue a discount coupon on new vehicles if one is junking their 12+ year old vehicle. Applicable for commercial vehicles too.

- There are over 40 lakh Pre BS-II four-wheeler vehicles
- With two-wheeler, the total goes to almost one crore vehicles that are older than 12 years
- Pre-BS II vehicles are almost 10 times more polluting than BS V vehicles
- Such policy would not only reduce pollution by 80% but will also increase sales of auto companies by almost 30%
- Proposal initially covers only four-wheeler vehicles. Later on, two-wheeler vehicles will also get similar incentives.

Link to Economic Times article for more details

Last edited by sohu9 : 3rd March 2016 at 14:06.
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