[AnishRanjan]

Originally Posted by anjan_c2007

You have rightly hit the nail on it's head. The dubious scrappage policy revealed just a few days back is a burdensome taxation policy for old car owners, under the guise of a scrappage policy. There are no visionary points or approaches of any kind nor are there likely to be any once the whole dubious policy is revealed, given the level of understanding of the situation by politicians and Babus. It is a package to elate and enrich the car makers who must be thrilled. One need not have a very good understanding of things to decode the fact that it is car industry-centric totally. Their greasing of palms in the corridors of power has paid rich dividends. The policy is not at all people-centric. They just want to slow poison the 15 year plus old private car owners, many of whom would give up, hang their old car ownership boots and get rid of their old vehicles. The most vulnerable cars would be those from the 1970's, 80's and 90's, which are already dwindling in numbers.

It's like saying "you don't want to die. OK we will slow poison you to death."

I had earlier read about such predictions from an automobile guru in the print media, who had said that the MNC auto makers have tried such tricks to influence scrappage policies since the 1970's in the developed countries to boost the now stagnating sales. They were very unsuccessful and disappointed due to the transparency in the government working in the developed world. And the guru had predicted that they would use similar dubious methods and try their luck in developing countries. Now it's for everyone to see how successful these MNC automakers in tandem with desi ones were.

I completely agree with you on your points and this is the sorry state of affairs. If you visit the rural parts of India, they are filled with old vehicles and those people are barely struggling to hold on to their vehicles with inflation, cost of fuel and maintenance. Do you think those people have the financial means to purchase new vehicles. Its highly unlikely and they will loose their ability to commute.

Getting a loan has become so much harder these days for self employed individuals and no one is talking about that. Majority of the Indians do not work in the corporate sector and therefore will not get loans from the organised sector as their eligibility criteria is poor. Will the government give them loans taking a high amount of risk. They surely will not do that and where do people go then? No one is talking about this.

The second hand market is also a cycle as a lot of cars which were attainable a few years back for lot of us comes up in the second hand market. Its the path of achieving a dream of owning such vehicle at an affordable cost for majority of Indians. This will also be in disarray.

So the future as a lot of famous pandits have already been quoted saying "Mobility will only exist to serve the rich" will come true. India is not a western nation where the per ca-pita income is much higher compared to the income of an average Indian citizen. Also with the pandemic the so called rich nations are also struggling to provide for their citizens and we are here debating on this topic when we are in no better position and probably even worse. Hope better sense prevails.

[Turbohead]

Originally Posted by FrozeninTime

The long term policy of government in general is to promote Public transportation and dissuade private ownership of vehicle by means of taxation. Congestion tax, scrappage policy, compulsory fast tag , green tax, increasing insurance prices year after year are all part of this policy. There is no point in whining about taxes as it is similar throughout the world except US.

Sure! That's the ideal world.But where's the public transport infrastructure for me to get from point A to B efficiently? Is there even a solid plan that can be assured to the public by a certain date?

I wonder what are the benifits given for scraping the vehicle. If it's just freedom from paying more taxes, then it's more of a rule than a policy to incentivise more sales.

[DogNDamsel12]

This policy is for Government/public transportation vehicles. This will impact a not-so-humble number of vehicles expected to be 28 million vehicles. The scrap generated is supposed to support the indigenous scrap industry (by reducing dependence on imports). Currently, India is riling under low-quality aluminum dumping by the US and China, as they are in an economic standoff!

But all of that would be more of a high-level cause and impact indulgence. At a micro-level, it seems that the writing is on the wall for many old-car-nurturers, though right now they get away by paying higher taxes. India has diverse economic standards, different purposes for the reasons why people own cars. Different states have different incentives and disincentives for environmental protection. Taxing a car by their age and not emission standards may not be the best measure. I am wondering how such policies will create a distinction. Wondering if people with better-maintained vehicles, or people from smaller towns, or MSMEs are being considered while rolling out such policies.

[Highh5]

Union Budget 2021: Sitharaman announces new scrappage policy - 20 years in case of personal vehicles and 15 years in case of commercial vehicles

Further details awaited.

[H0RSEPOWER]

So as per the latest updates, it seems to be voluntary, but we need to check for more details regarding the criterion.
http://timesofindia.indiatimes.com/b...w/80626121.cms

[shortbread]

Originally Posted by H0RSEPOWER

So as per the latest updates, it seems to be voluntary, but we need to check for more details regarding the criterion.
http://timesofindia.indiatimes.com/b...w/80626121.cms

All scrappage schemes are voluntary, Govt. cannot enforce a person to change his possession.

What they can do is enforce stricter pollution norms, old vehicle ban in city limits etc... making it difficult to own/operate an older vehicle.

Other than that they cannot force a person to get rid of a car he owns.

[arjab]

Will this twenty year rule apply to new registrations from April 1st 2021?
Or can they be claimed with a retrospective effect?

For example: Say, if one presently has a vehicle which completes 15 years in May - 2021 (as per the old smart registration certificate validity timeline).

Will that automatically extend to May-2026 without a Fitness test or that vehicle has to undergo fitness test at the 15-year mark (because of old registration timelines) + registration renewal and then again a fitness and reg renewal at the 20th year mark?

If the former is the case then the owner gets a breather for the next five years. If the latter is true then the status quo remains the same.

Any insights on this would be most welcome.

Thanks in advance!

[anjan_c2007]

Originally Posted by Highh5

Union Budget 2021: Sitharaman announces new scrappage policy - 20 years in case of personal vehicles and 15 years in case of commercial vehicles

Further details awaited.

That's some positive development and with a 20 year plus 5+5+5 years and so on of shelf life for each private vehicle. It's upto the owner to keep it or scrap it. The last trip to the "organised" scrappage yard should not be under duress for any owner, due to compulsions of getting a vehicle scrapped, merely because it has become "n" years old, irrespective of it's general condition and mileage.

The next dampener is the proposed Green Tax universally all over India for those who intend to keep their vehicles beyond 20 years. The Green Tax should be dutifully used by the exchequer for the environmental upkeep and betterment. But the state governments who are presently collecting this tax (incl. Maharashtra state since October 2010) are in all likelihood enriching the exchequer for spending funds elsewhere, without transferring the funds thus collected for environmental upkeep and betterment.

The Green Tax proposal from the Transport Ministry appears to be overtly a weapon to axe old vehicle owners with hefty amounts every five years so that they, under duress they get their vehicles scrapped. The quantum of this Green Tax has not yet been revealed. It is likely to be to the tune of several thousands of rupees, every five years. Maybe, we will again have to draft and send representations after the Green Tax fine print is out.

[dutta_d1]

All this would have made a lot of sense if things happened in the ideal order-
1. Govt gives a boost to the EV industry.
2. EVs become a real alternative with a handful of cars to choose from in the market.

3. Then, this old car scrappage policy is enforced.
4. People abandon old cars and take EVs.


Instead, you are forced to buy a new dinosaur oil guzzling vehicle now rather than waiting a few more years for the EV industry to mature.

This is not good. Ideally, next car investment should be on EVs, if we are serious about going green.

[KPR]

With the way petrol prices have gone close to ₹100, I think I will happily scrap my Punto. That can run for another decade too. Good things will not last for sure. No I don't want a car thereafter. I can't live with an EV like use and throw mobile phone types of today. I'm going to start walking more and do cycling wherever my road safety is not an issue. I personally want to scrap this crap policy.

[H0RSEPOWER]

As per the updates from rush lane, each of the mandatory fitness test would cost 40 thousand rupees for private cars crossing 20 years of age, and they would get maximum of 3 chances to pass the test.
http://www.rushlane.com/vehicle-scra...-12392488.html

[fordday]

Originally Posted by H0RSEPOWER

As per the updates from rush lane, each of the mandatory fitness test would cost 40 thousand rupees for private cars crossing 20 years of age, and they would get maximum of 3 chances to pass the test.

For the lakhs of entry level maruti car owners this will create a situation where the cost of renewal will be more than the value of the car. If they want to sell the car then, it will fetch them peanuts. And the cost of a new car will be prohibitive for them.

What a dilemma to be in.

[srishiva]

Originally Posted by H0RSEPOWER

As per the updates from rush lane, each of the mandatory fitness test would cost 40 thousand rupees for private cars crossing 20 years of age, and they would get maximum of 3 chances to pass the test.
http://www.rushlane.com/vehicle-scra...-12392488.html

What are they testing ? Testing Human body is not that costly. Isnt the testing limited to pollution only ?

[longhorn]

Originally Posted by srishiva

What are they testing ? Testing Human body is not that costly. Isnt the testing limited to pollution only ?

They are testing how much of their BS you are willing to put up with. Automobile associations, commercial vehicle owners, all should get together and start an agitation like what the farmers are doing now.

These clowns get driven around in government vehicles with everything paid for from taxpayer money. They haven't a clue as to what the common man has to put up with. 40k for fitness test of a vehicle that would probably fetch a similar amount in residual value.

High time at least a degree level of education is made mandatory for standing in election. Education matters a lot more than one would think.

[JithinR]

Originally Posted by H0RSEPOWER

As per the updates from rush lane, each of the mandatory fitness test would cost 40 thousand rupees for private cars crossing 20 years of age, and they would get maximum of 3 chances to pass the test.
http://www.rushlane.com/vehicle-scra...-12392488.html

Wouldn't really take a rushlane article as gospel. These guys mess up leaks for automotive content, I wouldn't depend on them to write an accurate article on automotive policy.

Quite a lot of our ministers and babus are an uneducated/elitist lot but even they wouldn't be dumb enough to put such a high price tag on vehicle fitness tests.