NEW DELHI: The recently announced automobile scrappage policy will provide much needed respite to the automobile industry as sales of vehicles across categories can get a boost as customers are incentive to scrap their old vehicles, according to industry experts. “The policy will help vehicle buyers benefit from zero registration fee, rebate on road taxes, upgraded discounts on purchase of new vehicles and reduction on cost of maintenance. He further added that raw material prices, especially steel, have significantly increased (around 30%) over the last six months, further pushing the production cost. With recycling of old vehicle metal, the production cost for new vehicle is expected to come down to an extent and allow rationalisation of production cost. “The vehicle scrappage policy by the Central government is a significant step towards Atmanirbhar Bharat and will put India on the map.

Source: Mint August 14, 2021 11:26 UTC