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View Poll Results: Will a scrappage policy be the saviour of the Indian auto sector?
Yes 125 37.76%
No 199 60.12%
Other 7 2.11%
Voters: 331. You may not vote on this poll

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Old 5th May 2020, 04:14   #31
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

This will only mess up the whole automobile industry. If people are forced to scrap their cars say after 15 years, that will automatically impact the resale value of the cars. This will further prevent people from selling their cars since they would be losing a lot of value so they might as well use it till the end of time. people buying premium cars might not care much but its the middle class people who buys cars below the 15 lakh bracket that will think this way the most. This is the bracket where majority of the sales happen. So someone who usually changes their car every 5-6 years will now move to maybe 10-15 years! thats killing sales of new cars indirectly. India is still a country where people think of VFM than the thrill/convenience a car offers. It's sensitive.
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Old 7th May 2020, 17:07   #32
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

I voted No.

I feel a nationwide scrappage policy like what we have in Delhi NCR will have a detrimental affect on the already tottering auto industry. I haven’t seen the data on how the (10 years for diesel vehicles and 15 years for petrol vehicles) scrappage policy in the National Capital Region has affected vehicle sales, but i would not be wrong if I say, this policy has given a lot of people pause before they make their next car purchase.

It is my belief, that people who come from a middle class background, who don’t necessarily have a lot of money to spend, would certainly think twice before investing in a new vehicle. Most of these people would prefer to use cab services instead. People from lower middle class who are aspiring to own cars would probably decide not to purchase a car after all.

People with limited finances would opt to use their vehicles till the date of scrapping, to get the maximum return from their investment. Those who do sell their vehicles in the used car market would lose even more money due to increased depreciation.

On the other hand the use car market would also be affected. Investing in a used car would make very little economic sense because of the fact that the cars in this space are already old (nearer to the date set for scrapping) and many of the vehicles here would demand further investment in repairs to function properly, since most of the previous owners would have neglected this since they would not be allowed to keep their vehicles. The use and throw mentality will probably set in.

This leads to the most important consideration - the affect on our environment. Western nations in their race to industrialise destroyed much of their environment, some of it irreparable. We cannot afford to make their mistakes in our quest to become a developed nation. Following the western method of use and throw will literally turn our country into a huge garbage pile. We also don’t have the infrastructure to recycle the vast numbers of vehicles which would be scrapped. Correct me if I am wrong, but not everything in a vehicle is recyclable anyway. How do we deal with that?

In conclusion I think, this policy will prove to be another obstacle for the auto industry to overcome.
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Old 8th May 2020, 10:32   #33
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

I think i will go against the tide here. A lot of research suggests that we will have over 9 million vehicles (including two-wheelers) ready to be scrapped by 2021 and over 20+ million vehicles by 2025. The only point is, scrappage should be voluntary. Few points that i can think of:

a) If the government can some how promise a lot (i mean, a LOT) of incentives, this scheme can work for a large percentage of eligible people: How about lowering GST for a new purchase or no road tax or income tax rebate. There can be lot of ways through which government can incentivize vehicle scrappage. Point is, we should focus on incentives and not penalties for keeping an old vehicle.
b) Timing is important. This policy has been under discussion since donkey years and we have only seen tareekh-pe-tareekh. This may not be the best time for implementation because of the COVID-19 situation. People are loosing jobs, facing reduction in income and what not. If now, someone scraps my vehicle, i may not be able to afford one or may not be in a position to commit for a new car purchase.
c) Most of us agree that 10-15 years is too short a time for scrapping a vehicle because it will still have a lot of life left. How about re-using the 'not so bad components' ? This will save us a lot of time and energy in producing new components. This may sound counter-productive but if the scrappage policy gets a go-ahead, this will be a derived benefit.
d) The government can in parallel, focus on establishing an organised sector for vehicle scrappage. Imaging the kind of employment that we will create.
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Old 8th May 2020, 13:43   #34
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

It's coming according to a report again in Economic Times of today:-

https://auto.economictimes.indiatime...dkari/75599687

On my part, I have written to the PMO requesting them to restrain the Transport Ministry from finalising a compulsory scrappage policy and better make it consensual for several reasons.

All of us can send a similar letter (please edit though as per your choice) to the PMO highlighting our grievances. First please go to the PMO portal, scroll down below, click Go to the Main Page, , then scroll down below, click Write to the PM. You will be navigated to the page. Please enter your particulars as desired, post the grievance in the box provided. It should be restricted to 4000 characters. A tracking number will be issued as an acknowledgement. Please save this number for tracking your application at a later date.

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Respected Sir, Salutations, The Ministry of Road Transport and Highways viz. MoRTH is preparing an automobile scrappage policy for compliance by the stakeholders. A consensual not compulsory under any circumstances scrappage policy, solely with the consent of the owner is desired. Exceptions should include automobiles that are declared unfit for not being compatible with the fitness norms as stipulated under the Indian Motor Vehicles Act 1988, by an authorised/ designated official. Registrations of such automobiles in the latter category are cancelled by the Registering Authority. India is not a rich country to afford only 15 year shelf lives of automobiles (privately owned vehicles). We have the lower class, lower middle class, daily wagers, retired persons and a host of others who buy an automobile only once or twice during their lifetimes. Apart from this, we have enthusiasts who maintain very old automobiles in a pristine condition that are 16-49 years old. The automobiles aged 50 plus are to be soon protected as historic vehicles thankfully, as per a draft notification by the MoRTH. Hence, the targeted 16-49 year old automobiles by some groups with a vested interest for scrapping are sinister moves and they need to be checked and restrained. There is a proposal to import 'end of life cars' from abroad and salvage them here in the two existing plants, which is a welcome step. Unauthorised scrapping practiced as of now in India, releases harmful pollutants and if it's done at environmental friendly and authorised plants it is preferable and safer. The present rate of attrition of older automobiles in India now, is among the highest ever, as many owners continue to upgrade to newer ones. Also, very rarely will one find these as daily drivers on the streets. In a traffic congregation of 100 cars, hardly 5 to 10 percent could be older ones. No civilised and developed country in the world other than Japan, has a compulsory 'end of life' policy for automobiles. France and a few other countries levy higher taxes on older but only on non classic/non vintage automobiles. China has a compulsory scrapping policy, but we cannot list China as a civilised country. To counter argue with the clean air, green and pollution lobbies who say that older 16-49 year old automobile riddance will clear the air of toxicity, the Delhi and NCR smog of winter 2019 was the worst ever, despite the fact that all older 10 year old private diesel and 15 year old petrol cars have been banished. These lobbies, if at all they want clean air and greenery, free of pollution, must reason for incentivisation of public transport and disincentivisation of personal transport with the concerned authorities. Hence it's unrealistic to think of a compulsory scrappage policy here in India and in turn a wishful to think that such a policy will propel sales of automobiles. With a compulsory automobile scrappage policy we will only punish the poor, lower class, lower middle class, retired persons and also automobile enthusiasts. Moreover, the present state of the economy due to the pandemic has paralysed the earnings of many of the owners of such older automobiles. We hope you will sympathetically look into the matter and request the MoRTH to formulate a consensual automobile scrappage policy. Thanking you, Yours respectfully,
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Old 10th May 2020, 08:08   #35
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

Talk about vehicle scrappage is again gaining momentum, but none of tbe articles carry the opinion of the people who actually pay for and use the vehicles; you, me and the general public.

All articles refer to meetings exclusively between ministry and manufacturers.
Why are buyers/users and transporters assotiations not being involved?

Although I do not have any particularly old vehicles, I am from a rural area where many people run battered old personal and commercial vehicles that they depend on for a livelihood.

Unilaterally taking these vehicles off the road can have political ramifications.
Therefore, I am beginning to wonder if the end users are being ignored in all decision making on this topic because the deal will be so sweet that the public will lap it up.

Will we see big discounts from manufacturers and significant tax rebates from the Govt?

PS- as someone who has been involved in Public Economics in the past, I believe unilateral scrappage policy (ie. vehicles over 15 yrs that is currently being touted) in a poor country like ours is a waste of scarce public resource.

Last edited by KMT : 10th May 2020 at 08:19.
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Old 10th May 2020, 08:14   #36
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

I believe a scrappage policy, linked with the right monetary incentives is necessary. At the very least, it will create a policy background for technological upgrades in the future. A working scrappage policy for the next 5 years will augur well for the transition to electric/fuel cell vehicles.
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Old 10th May 2020, 18:41   #37
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

I have voted NO. I don`t think that any scrapping policy be it mandatory or optional will help the Auto sector to revive. It will only deter people to not to buy any new or used car in this tight economic situation.

Rationally thinking one cannot scrap a vehicle just based on age, other factors should be considered like roadworthiness, emission and age (if at all) should be the last and most unimportant parameter. Even if something comes up as a scrappage policy, it should only take into purview commercial vehicles and the desi “jugad” which aren’t even registered, as these are the vehicles which are mostly responsible for pollution. Private car owners who keep their vehicles in perfect condition no matter how old they are and park inside their premises thereby, not blocking public spaces, should not be penalized by any such law.
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Old 11th May 2020, 18:20   #38
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

Voted Yes.

Although, instead of introducing just age based scrapping system, the government must think about working up on an algorithm with different factors to evaluate the actual fitness levels here. Most enthusiasts maintain there cars/ bikes in pristine conditions and it would be unfair to scrap these cars just on the basis of there age.
Further, the current process of getting fitness certificate should either be changed or strengthened. We all know how RTO usually provides fitness certificates in many places (mainly tier B & tier C cities), without even evaluating the vehicle in person.

Seems like Nitin Gadkari is adamant on introducing the scrappage policy during his tenure, read this from HT Auto:

https://auto.hindustantimes.com/auto...916564210.html

According to the article, they are just waiting for clearance from the finance ministry and the policy could be introduced in near future.
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Old 12th May 2020, 18:26   #39
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

TOI today. They have highlighted our points, despite the constraints in reporting due to the pandemic news receiving priority. Thanks TOI

https://m.timesofindia.com/city/nagp...w/75685274.cms
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Old 14th May 2020, 11:17   #40
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

This surely is the lobby at work. If a vehicle is maintained well, it should have a chance to exist. Similarly, if it's maintained poorly, even if its a 5 yr old, it should seize to exist. When we have a good system of checking emissions that's required every 6 months and Fitness Certification every 5 years post 15 years, why do we need a scrappage policy? Of course, there is corruption in Fitness procedure. That's not a worry as corruption is too deep-rooted and will be part of our country. Right from obtaining a Driving License to many respects of our day to day life, there is corruption. Scrappage policy based on age is really not a good idea
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Old 5th September 2020, 12:58   #41
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

looks like we are very near to hear the scrappage policy from the Govt . Heavy industry ministry confirms at the SIAM meet that they ready with the proposal . All the stakeholders have also given their inputs and we will announce it soon . They also say " soon means very soon " !

This can be a major boost to al Vehicle manufacturers . and ,
Owners of 15 year old vehicles may have to brace themselves to hear the surprise what the policy can bring to table.
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Old 6th September 2020, 23:37   #42
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

Since this will be a nation wide mandate, I feel that the Govt will give condition based life to the vehicles but will increase the fitness charges by a huge sum.
This can save the right cars which would otherwise be unnecessarily scrapped
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Old 7th September 2020, 12:51   #43
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

I don't think the government mandate will be based on the condition of the vehicle. It will most likely be based on the age of the vehicle, although I too agree that it should be based on the condition of the vehicle rather than age. What I expect them to do is to rake up the registration renewal fees multiple times over such that it would make no financial sense to renew at the end of 15 years.

I know, it makes absolutely no sense at all to force the scrapping a vehicle which is in a pretty good condition, because manufacturing a new vehicle will cause more pollution than a used vehicle that is properly maintained. That said, application of common sense has been thrown out of the window for the better part of the last decade, so I expect none of it going forward (mandatory FasTag for a vehicle that spends 80% of its life on non tolled roads?).
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Old 7th September 2020, 13:08   #44
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Re: Will a scrappage policy be the saviour of the Indian auto sector?

I cant understand the logic behind this policy and the timing as well. We are in the middle of a pandemic and people are struggling to make their ends meet. Except for the rich may be, the middle class and the poor are struggling financially in these troubling times.

A lot of people don't use cars everyday and their cars might be old but has been maintained very well. It simply does not make any economic sense to scrap their vehicles and on top of that take loans at this difficult times to buy new cars. I strongly oppose this policy and hope it does not add additional burden on people who are already struggling due to the current scenario.

Let them inspect vehicles and badly maintained vehicles should be removed and I agree on that. Looks like the manufactures and the government is bothered about filling their pockets and adding more misery to the common man.
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Old 10th September 2020, 00:06   #45
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Vehicle scrappage policy to come into action soon!

The minister of road transport and highways, Nitin Gadkari has announced yet again that the vehicle scrappage policy will come into action very soon, possibly by the end of this month or the next. According to media reports, almost 90 lakh vehicles will be taken off the road by the implementation of this new policy, which includes both private as well as commercial vehicles. While considering the boom which the automotive industry will have in our country, along with the scrappage bonus which is offered to those who are buying a new vehicle in exchange for their old vehicles which will be listed off for scrapping, the policy has it's own positive sides. But on the other hand, the policy will affect most people with private transport buses ( non-state government buses) , national permit trucks etc ,badly since most of them will not be in a financial situation to buy a new vehicle taking into account the affect of Covid-19 on various businesses. The policy will also stand against the opinions of those car lovers who maintain vintage cars , those who loved their cars and wished to keep them forever, and many more.
So, Is it the right time to implement this? Is the Indian automotive industry ready for such a huge step? These questions are yet to be answered by the concerned authorities.
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