A recent survey conducted by LocalCircles has revealed that many vehicle owners are not happy with the norms for scrapping of old vehicles. Vehicle scrappage policy was introduced by the central government not only to promote the sale of new vehicles but also to remove old and polluting vehicles from the road. The policy requires vehicles to undergo a mandatory fitness test at the end of 15 years for commercial vehicles and at the end of 20 years for passenger cars – only vehicles passing the required fitness test are allowed to be re-registered. Thereafter the vehicle will have to undergo the process every 5 years or if it fails the fitness test then it should be cancelled.
Based on the survey conducted, out of a total of 10,543 votes, 57 per cent of the respondents felt that the scrapping criteria should be based on the km completely covered. Another 18 per cent felt that the vehicles should meet the two criteria of age and distance covered, while 12 per cent said that the vehicles should meet the criteria of either age or distance. The distance criterion in the survey was fixed at 2 lakh km for commercial vehicles (CV) and 1.5 lakh km for passenger vehicles. The age criteria for scrappage was 15 years for passenger vehicles and 20 years for CVs.
Additionally, based on a total of 15,706 votes, 36 per cent of the respondents felt that they should receive a tax deduction equal to 10 per cent of the original vehicle purchase invoice or the average list price of the vehicle being canceled. At present the owners are to be compensated between 4-6 per cent of the ex-showroom value of the scrapped vehicle, though this is not in the form of tax deduction. Meanwhile, 29 per cent of the respondents felt that the tax deduction should be equal to 50 per cent of the road tax paid on a new vehicle.
The mandatory implementation of fitness testing and the recent revision of its pricing are also expected to make long-term vehicle ownership more expensive. Keeping this in mind, 51 per cent of households who responded to the survey said they would either reduce the number of vehicles owned or keep the minimum number of vehicles to meet any additional demand by app-based taxi services. Meanwhile, 34 per cent said they would replace their old vehicles but keep their number of vehicles constant.
The survey respondents felt that the distance covered by the vehicles should also be considered in the scrapping criteria
The survey received a total of 34,000 responses from consumers across 291 districts of the country, of which a major chunk came from Tier 1 cities. LocalCircle said that all the respondents were valid Indian citizens who had registered with the website.
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While the respondents comprised only a select small group, this indicates a lack of enthusiasm from car owners towards the new vehicle scrappage policy. It will also be a blow to the country’s plans to reduce carbon emissions and reach net carbon zero by 2070, an important step towards reducing emissions by eliminating old and polluting vehicles from plying on the roads. According to the forecast by the Center for Science and Environment (CSE), India is expected to have around 20 million vehicles on its roads by 2025.
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