Improve the Availability of Automobile Raw MaterialsThe vehicle scrappage policy will create a comprehensive ecosystem for phasing out the old and defective vehicles. According to the scheme, vehicles, both private and commercial will undergo tests in the fitness centres to ensure their fitness. The private vehicles which are older than 20 years will be de-registered if they fail to meet the fitness criteria. The commercial vehicles which are older than 15 years will be de-registered if found unfit. It is also proposed under the scheme that all the government vehicles will be de-registered and scrapped after 15 years from the registration date. Different criteria to determine the fitness of the old vehicles will be emission tests, braking, safety equipment, and others as per the Central Motor Vehicle Rules, 1989. The scrappage of old and unfit vehicles will increase the availability of raw materials such as plastic, steel, etc. for the automobile industry. The scrapping of the old vehicles will also generate demand for new vehicles in the industry.
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Increase the Sales of New VehiclesThe scheme also proposes certain incentives to vehicle buyers on the scrappage of their old vehicles. Some of the proposed incentives for new vehicles against the scrapping certificate issued by the government-authorized scrapping centres include a 5% discount on new vehicle purchases, registration fee waive-off, road-tax rebate, etc. This would boost the sales of automobiles in the country by encouraging more and more customers to undergo fitness tests.
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