Here's how much discount vehicle buyers can get via scrapping

Vehicle manufacturers have agreed to offer discounts on purchase of new automobiles if buyers show a scrappage certificate for a limited period.

Commercial vehicle and passenger car manufacturers have shown a willingness to offer discounts for a limited period of two years and one year respectively, the ministry of road transport and highways says.

These discounts will further incentivise scrapping of end-of-life vehicles, thereby ensuring plying of safer, cleaner and efficient vehicles on the roads, it says.

Passenger vehicle manufacturers such as Maruti Suzuki India Ltd, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia Motors, Toyota Kirloskar Motor, Honda Cars,  JSW MG Motor, Renault India, Nissan India and Skoda Volkswagen India are offering discounts of 1.5% of the ex-showroom price of new car or ₹20,000, whichever is less, against the passenger vehicle scrapped by the owner in the last six months. Mercedes Benz India has offered a flat discount of ₹25,000, which will be over and above all existing discounts.

The ministry has launched the voluntary vehicle modernisation programme or vehicle scrapping policy to create an ecosystem for phasing out unfit polluting vehicles across the country. Buyers can get their old vehicles scrapped through a network of registered vehicle scrapping facilities. Presently, there are over 60 such facilities across 17 states and union territories.

Discounts by original equipment manufacturers (OEM) are in addition to the scrap value provided by registered vehicle scrapping facilities to the vehicle owners and existing incentives of motor vehicle tax concession, waiver of fee for issuance of certificate of registration and waiver of liabilities by Government of India under the vehicle scrapping policy linked to the certificate of deposit (CD) on purchase of a new vehicle.

Commercial vehicle makers namely Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors and SML Isuzu are offering discount equivalent to 3% of the ex-showroom price for a commercial cargo vehicle with more than 3.5 tonnes gross vehicle weight (GVW) scrapped by the owner within last six months and a discount equivalent to 1.5% of the ex-Showroom Price for a commercial cargo vehicle with less than 3.5 tonnes GVW scrapped by the owner within last six months.

Discount to be offered to a person buying a vehicle against a traded certificate of deposit of a scrapped commercial vehicle would be equivalent to 2.75% of the ex-showroom price for scrapping a commercial cargo vehicle with more than 3.5 tonnes GVW and a discount equivalent to 1.25% of the ex-showroom price against a traded certificate of deposit for scrapping a commercial cargo vehicle with less than 3.5 tonne GVW. These discounts will also be considered for buses and vans.