Tata, Ashok Leyland in favor of incentive-based CV scrappage policy

TusharK · 3rd May 2020, 18:51

According to a media report, Tata and Ashok Leyland believe that an incentives-based scrappage poliy for commercial vehicles (CV) could help create demand.

Tata, Ashok Leyland in favor of incentive-based CV scrappage policy-indiantrucks.jpg

CV sales have been on a decline following the transition to BS6 emission norms. The outbreak of the Covid-19 pandemic has further affected the industry.

Both CV makers are of the opinion that incentives in the form of rebate in GST, road tax or registration charges would help boost demand. It is said that customers would benefit from scrap value, tax savings and added discounts. A scrappage policy is also expected to benefit the environment.

According to Nitin Gadkari, union minister for road transport and highways, a scrappage policy is said to be in the final stages of getting Cabinet approval.

Source

Link to Team-BHP News

Sk8r · 4th May 2020, 09:59

Sure, why not ? Sounds beneficial from all aspects

- Cleaner Environment
- Safer for Drivers and other vehicles
- Boost in sales for CV manufacturers

Only drawback would be the increase in costs for few businesses, but that should get offset by better efficiency/ lower maintenance in the long run

1.2TSI7DSG · 5th May 2020, 14:46

I don't find this is as the right way to revive the auto sector. It's as if a window shop has a person breaking windows to generate the business.

This requires end to end empircal evaluation with respect to savings in the carbon footprint, improvement in fuel efficiency etc

anjan_c2007 · 21st September 2020, 12:10

The scrappage policy is no doubt draconian and small time transporters may be in for shocks and nightmares amidst months of almost no to low incomes. They have unions and can take up the matter with the appropriate authorities though, if aggrieved.

Tata and Ashok Leyland seem to be favouring the scrappage policy. There are so many news reports during the past few days on this issue. The one that I find interesting is this one from the financial daily The Mint. The onus of offering discounts /rebates is fully on the automakers as per this newsreport and no GST rebate or any concession from the government is to be expected. This will again start a new Tug of War between the two potential rebate giver parties.

https://www.livemint.com/politics/po...646568978.html

3rd May 2020, 18:51	#1
TusharK Senior - BHPian Join Date: Jul 2017 Location: Pune Posts: 6,272 Thanked: 55,839 Times	Tata, Ashok Leyland in favor of incentive-based CV scrappage policy According to a media report, Tata and Ashok Leyland believe that an incentives-based scrappage poliy for commercial vehicles (CV) could help create demand. CV sales have been on a decline following the transition to BS6 emission norms. The outbreak of the Covid-19 pandemic has further affected the industry. Both CV makers are of the opinion that incentives in the form of rebate in GST, road tax or registration charges would help boost demand. It is said that customers would benefit from scrap value, tax savings and added discounts. A scrappage policy is also expected to benefit the environment. According to Nitin Gadkari, union minister for road transport and highways, a scrappage policy is said to be in the final stages of getting Cabinet approval. Source Link to Team-BHP News Last edited by TusharK : 3rd May 2020 at 18:53.
	(4) Thanks

4th May 2020, 09:59	#2
Sk8r BHPian Join Date: Jul 2019 Location: Chennai Posts: 462 Thanked: 2,169 Times	Re: Tata, Ashok Leyland in favor of incentive-based CV scrappage policy Sure, why not ? Sounds beneficial from all aspects - Cleaner Environment - Safer for Drivers and other vehicles - Boost in sales for CV manufacturers Only drawback would be the increase in costs for few businesses, but that should get offset by better efficiency/ lower maintenance in the long run
	() Thanks

5th May 2020, 14:46	#3
1.2TSI7DSG BHPian Join Date: Nov 2015 Location: MH01/TS09 Posts: 697 Thanked: 1,760 Times	Re: Tata, Ashok Leyland in favor of incentive-based CV scrappage policy I don't find this is as the right way to revive the auto sector. It's as if a window shop has a person breaking windows to generate the business. This requires end to end empircal evaluation with respect to savings in the carbon footprint, improvement in fuel efficiency etc
	(3) Thanks

21st September 2020, 12:10	#4
anjan_c2007 Distinguished - BHPian Join Date: Jul 2008 Location: India Posts: 8,335 Thanked: 20,655 Times View My Garage	Re: Tata, Ashok Leyland in favor of incentive-based CV scrappage policy The scrappage policy is no doubt draconian and small time transporters may be in for shocks and nightmares amidst months of almost no to low incomes. They have unions and can take up the matter with the appropriate authorities though, if aggrieved. Tata and Ashok Leyland seem to be favouring the scrappage policy. There are so many news reports during the past few days on this issue. The one that I find interesting is this one from the financial daily The Mint. The onus of offering discounts /rebates is fully on the automakers as per this newsreport and no GST rebate or any concession from the government is to be expected. This will again start a new Tug of War between the two potential rebate giver parties. https://www.livemint.com/politics/po...646568978.html Last edited by anjan_c2007 : 21st September 2020 at 12:17.
	() Thanks