[arunkumarsarat]

The 'cash for clunkers' scheme was run in the US with the objective of reviving the economy and to prevent the economy from sliding into depression.
The scheme was tailor made in such a way that it also incentivised the US consumer to shift away from gas guzzlers.
Even though, it was expected to revive GM and Ford, the biggest beneficiaries were the Japanese.

The Indian government has to do its homework with regard to the objectives of such a scheme. Presently, our primary concern is pollution, partly due to the existence of very old buses and trucks and a scheme which addresses this is the need of the hour.

[hellmet]

Cash for clunkers was introduced in the USA during the recession and was an attempt to stoke growth within the economy. What in the world is wrong here in India that requires us to do something similar? We're not in a recession, neither do we need any more "growth" of cars on the road with our limited infrastructure.

I'm not parting with my M800 so I can pay more taxes.

[varunanb]

Originally Posted by hellmet

Cash for clunkers was introduced in the USA during the recession and was an attempt to stoke growth within the economy. What in the world is wrong here in India that requires us to do something similar? We're not in a recession, neither do we need any more "growth" of cars on the road with our limited infrastructure.

Losing jobs and closing of offices are not only recession. The volumes of auto industry especially sales or number of commercial vehicles, which generally reflects the mood of a country and we are not the highest now. If I remember correctly 2007/08 has the highest nos. We are way off the mark currently.

Its been years since we in auto industry or for that matter any industry in India have received significant increases. We might not be in deep trouble as in Greece, but we are not out of it either.

So, kick starting of such schemes might be better if trucks are also included for recycling. But this should be coupled with development of basic infrastructure as well, else, there will be no demand for vehicles.Still something is better than nothing.

[anjan_c2007]

It is a pity that court judgments are pronounced based on the age of a car. Newspapers too rely on such ill-informed writers - more so a newspaper like The Economic Times ! Sad state!!!!The writer of this article has the bare minimum knowledge about the car industry and market in India and even elsewhere.

Such people step on to the main-stage and command undue attention. The suggestions put forth in The Economic Times have several angularities. Again its a pity that a celebrated newspaper like this one allows such ill informed writers to pen articles that are read by the top honchos in the economics field.

About six years ago when the world was amidst an global economic recession, car sales dwindled and as far as I can remember the German and British governments offered incentives for scrapping old cars to the owners who would be swapping these for newer ones. Here government intervention was necessary to boost car sales, but in the present scenario, the car makers should buy the old cars in exchange and pay the owner for the same. The cars deemed fit for scrapping can be decided by the manufacturer / car dealer or showroom. If repairable these should be made to run more kms. The government stepping in here to pay doles will be foolhardy.

A car does not age at all if maintained impeccably.