Nitin Gadkari, the Union Minister for Road Transport and Highways, has passionately called upon all key stakeholders to rally behind and endorse the Vehicle Scrapping Policy. In his recent address at a stakeholder consultation held in New Delhi, Minister Gadkari underscored the multifaceted benefits of this policy, emphasising that it’s a win-win proposition for all involved parties.
Gadkari noted that the Ministry has embarked on a series of strategic initiatives designed to bolster the demand for vehicles. These include the development of a world-class highway network, the electrification of buses, and the implementation of mandatory automated fitness testing for vehicles. These endeavours not only pave the way for a safer and more efficient transportation ecosystem but also serve as a foundation for the policy’s success.
Furthermore, he called upon automotive Original Equipment Manufacturers (OEMs) to step up their production capacities, positioning India to become a global leader in the automotive industry. Recognising that the auto sector stands to benefit immensely from this policy, Gadkari urged them to actively support its three pivotal pillars: investment in Automated Testing Stations (ATSs) and Registered Vehicle Scrapping Facilities (RVSFs), disseminating awareness about policy advantages through their dealer networks, and the formulation of incentives, such as discounts, for citizens who opt to scrap their vehicles.
Anurag Jain, Secretary of the Ministry, echoed this sentiment, encouraging the auto industry to establish scrap centres and automated testing stations across the nation. It was highlighted that the Vehicle Scrapping Policy is projected to boost auto sales by approximately 8% while contributing around 0.5% to the country’s GDP. Hence, auto OEMs are urged to provide support to this transformative initiative.
The stakeholder consultation event sought to secure the automobile industry’s support to expedite the implementation of the Vehicle Scrapping Policy. This involves investment in vehicle scrapping infrastructure, namely RVSFs and ATSs, creating awareness among citizens about the policy’s benefits, and extending incentives to vehicle owners who choose to scrap their vehicles at RVSFs.
Notably, the event saw participation from major automotive OEMs such as Tata, Mahindra, Maruti, Kia, and Hyundai, as well as auto dealers and used car aggregators like Car Dekho and Cars24. Their presence was instrumental in discussing the challenges and requisite actions needed to fast-track the implementation of this pivotal policy.
The Ministry of Road Transport and Highways launched the Voluntary Vehicle-Fleet Modernisation Program, also known as the Vehicle Scrapping Policy, in 2021. This visionary policy aims to establish an ecosystem for retiring outdated, unsafe, and polluting vehicles while facilitating their replacement with newer, safer, and more fuel-efficient counterparts.
In doing so, it charts a course towards a greener, safer, and more prosperous future for the Indian automotive industry and the nation at large.