Scrappage policy would work only If incentives are attractive, says FADA
There are about 45 million vehicles total, out of which 5 million are cars, 3 million are commercial vehicles (CVs) and about 31 million two-wheelers
The auto industry has been asking for this policy two reasons — first, the pollution created by old vehicles and second, a boost the industry would get from this policy, said Ashish Kale, president at Federation of Automobile Dealers Association (FADA).
“It is long needed and it has been a long demand of the auto industry to have a scrappage policy,” he said.
The government is looking at increasing the compliance burden for vehicles which are over 15 years old and is no longer mulling a mandatory scrapping scheme for older vehicles, CNBC-TV18 reported earlier today, citing sources close to the development.
“It is long needed and it has been a long demand of the auto industry to have a scrappage policy,” he said.
There are about 45 million vehicles total, out of which 5 million are cars, 3 million are commercial vehicles (CVs) and about 31 million two-wheelers, said Kale. “Overall 40 percent of the vehicle population is pre-2000 of the current vehicle population,” he further mentioned.
The policy would work only if the incentives are attractive and would primarily increase the demand for new vehicles, added Kale.
"I am sure the government would want this policy to succeed so they will come up with attractive incentives.”
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