“However, the program may become useful for owners of old diesel vehicles, especially in the wake of recent ban in Delhi-NCR and other states like Kerala and Chhattisgarh. ICRA Ltd Senior VP Subrata Ray said the impact of the scrappage programme could be limited owing to moderate level of incentive (8-12 per cent) being offered. The ban on registration of old diesel vehicles in Delhi-NCR and the proposed vehicle fleet modernisation programme could lead to around 3 per cent additional sales of new passenger vehicles over the next two years, rating agency ICRA has said. As market value of older diesel vehicles fall, the scrappage policy may become attractive for customer segments like taxi owners and old trucks,” Ray said. Besides, the development could also lead to 3 per cent incremental sales in the two wheeler segment and additional sales of around 6-7 per cent in the commercial vehicle vertical.

Source: Indian Express July 31, 2016 07:30 UTC