Vehicle manufacturers are of the view that the policy will not only boost sales but also help in achieving a cleaner and greener environment. , Photo Credit: PTI
The Union Budget for 2023-2024 lays special emphasis on vehicle scrapping policy by allocating adequate funds for replacement of vehicles that are more than 15 years old.
The move has been welcomed by automobile manufacturers as it will provide a significant opportunity for fleet modernization and reduce fossil fuel consumption to a great extent.
Presenting the Union Budget on Wednesday, Finance Minister Nirmala Sitharaman said all state and central government-owned vehicles, including buses owned by transport corporations and public sector undertakings, which have been on the road for more than 15 years, will be phased out. .
“Replacing old polluting vehicles is an important part of greening our economy. To take forward the vehicle scrapping policy outlined in Budget 2021-22, I have allocated funds for scrapping of old central government vehicles. States will also be helped to replace old vehicles and ambulances.
Ashok Leyland Executive Chairman, Dheeraj Hinduja said this budget also echoes the company’s spirit and commitment towards clean energy vehicles for a clean and green future as part of the national mission to achieve net zero carbon emission target .
Sharing the same view, Vikram Gulati, Country Head and Executive Vice President, Toyota Kirloskar Motor said that this will not only help the environment and reduce fossil fuel consumption, but will also generate demand for new vehicles.
Chetan Maini, co-founder and chairman of Sun Mobility, termed it as a positive step towards the goal of zero carbon emissions.
Federation of Automobile Dealers Association of India President Manish Raj Singhania said that Rs 10 lakh crore in infrastructure spending will aid commercial vehicle sales, the target of scrapping all old government vehicles with the help of state governments will boost sales across segments.
“The policy will not only boost sales but will also enable in achieving a clean and green environment for overall sustainable development. Additionally, the infusion of funds into the scrappage policy is a remarkable step in the right direction towards achieving India’s goal of becoming carbon neutral by 2070,” said Venkatram Mamillapalle, Country CEO & MD, Renault India.
“It will also ultimately help the entire ecosystem of the automotive industry as it will translate into growing order books of original equipment manufacturers, increased production and job creation,” he added.
Satyakam Arya, MD & CEO, Daimler India Commercial Vehicles, said the policy provides the industry with a way to prepare itself to replace phased out vehicles and also encourages the proliferation of scrap companies to expand.