Nitin Gadkari urges parties to endorse the vehicle scrapping proposal

New Delhi- Shri Nitin Gadkari, the Union Minister for Road Transport and Highways., urged all interested parties to come up and support the vehicle scrapping program. He said it is a win-win situation for everyone while speaking at a stakeholder consultation today in New Delhi.The Union Minister stated that the Ministry has implemented numerous steps to develop a robust demand for automobiles, including the construction of a world-class highway network, the electrification of buses, and the requirement for automated fitness testing of vehicles. He argued that the car OEMs should assist the country's goal of having the biggest automotive industry in the world by working to increase their production capacity.

Shri Gadkari emphasized that since the auto industry is the main beneficiary of this policy, they must step up and support the three main pillars of increased investment in the construction of Automated Testing Stations (ATSs) and Registered Vehicle Scrapping Facilities (RVSFs), increased public awareness of the policy's advantages through their dealer network, and a finalized discount percentage in relation to the certificate of deposit obtained by citizens when they scrap their cars.

The car sector was urged by Secretary Shri Anurag Jain to establish scrap yards and automated testing facilities all over the nation. It was highlighted that the Vehicle Scrapping Policy must receive the full support of vehicle OEMs because it is anticipated to boost vehicle sales by around 8% and boost the nation's GDP by roughly 0.5%.

This stakeholder consultation sought the support of the auto industry to hasten the implementation of the vehicle scrapping policy through investments in the infrastructure of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs), raising public awareness, and offering incentives to vehicle owners to scrap their vehicles at RVSFs. Attendees from all of the major auto OEMs, such as Tata, Mahindra, Maruti, Kia, Hyundai, etc., as well as auto dealers and used car aggregators, such as Car Dekho and Cars24, shared their perspectives on the difficulties and steps that must be taken to hasten the implementation of the vehicle scrapping policy.

Welcomed the dignitaries and business representatives, Additional Secretary Shri Mahmood Ahmed emphasized the fundamental advantages of V-VMP. Director Shri Paresh Goel then gave a presentation on the status of the V-VMP and the help that the auto sector was required to provide.

The SIAM gave their thoughts on the incentives for citizens through this legislation, and all other stakeholders in the car sector contributed well.

The Voluntary Vehicle-Fleet Modernization Program (Vehicle Scrapping Policy) was introduced by the Ministry of Road Transport and Highways (MoRTH) in 2021. This policy aims to establish a framework for gradually replacing old, dangerous, and harmful automobiles with newer, safer, and more fuel-efficient ones.