This reporter from The Economic Times has again highlighted the forthcoming scrappage policy with his own imaginations, distorted facts and figures and has shown his total ignorance and skewed thinking in the matter. Perhaps this is a planted newsitem at the behest of the SIAM and FADA to find solace from the gloomy months the auto industry is facing since 2018, now accelerated into an uncertain and gloomy future.
https://auto.economictimes.indiatime...ustry/75338661
The reporter says 9 million vehicles older than 15 years are plying on the roads, quoting the CPCB and this number is expected to reach 20 million by 2025. Rather than using CPCB data such data from the Transport Ministry will be more reliable. But this is totally misconcieved. The truth is that very small percentage of these older vehicles regularly ply on the roads and are used as daily drivers. The pure magical trick by which this figure of 9 million will reach 20 million within five years (2025), will also make India's most famous magician, late Mr P.C. Sorkar turn in his grave.

I am talking only about private and not commercial vehicles in my post.
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Considering the impact of recent coronavirus pandemic and its effect on the overall industry, which has already witnessed a prolonged decline in demand, scrappage policy is seen as a saviour in sight, expected to emerge swiftly in reviving the auto sector out of its worst slump in the last 20 years.
As more and more vehicles will be scrapped and eventually recycled, customer ownership will get a breather, thereby contributing to new car purchases amid a host of challenges waiting to grip the industry post lockdown.
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It seems that this person has just landed from the U.S., where such scrapping (voluntary only in the U.S.) by the tens of thousands is a regular affair. India is not so rich and nor are the car and bike owners so rich to afford a new car or bike every 15 years. The newsitem is hypothetical and imaginary. Imagine a daily wager or a retired person scrapping his car or bike every 15 years to buy new ones.
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Studies also say that scrappage can take 28 million polluting vehicles (mainly two-wheelers) off the roads, helping curb pollution in a massive way. Implementing the scheme for trucks and buses can bring down CO emissions by 17 percent, HC+NOx emissions by 18 percent and PM emissions by 24 percent
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I would not like to comment about the pollution caused by buses, trucks and commercial vehicles at all. Again this is an imaginary and ill-concieved para. Which studies ? He has not quoted the source of such studies. Maybe these are studies by the SIAM and FADA. The figure of 20 million is suddenly hyped to 28 million ! What reduction of pollution is this reporter talking of ? He is unaware and ignorant about the NCR smog of Nov- Dec 2019, which was the worst ever. This was even after all the 10 year old diesels and 15 year old petrol private vehicles were deregistered.
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As of now, two organised sector players already have their ventures- CERO by Mahindra & Mahindra, and Maruti Suzuki Toyotsu India, a JV between Maruti Suzuki and Toyota Tsusho.
Setup in December 2018, CERO is India's first authorised recycler for motor vehicles through a joint venture between Mahindra Accelo, a fully-owned subsidiary of M&M and MSTC (a government of India enterprise under Ministry of Steel).
Reportedly, Mahindra and Mahindra will be setting up many more such authorised scrappage centres in India by 2022.
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He has now become specific to name the scrappage plants and those proposed, viz. the beneficiaries, which are under-utilised and may only get the magic figures of 20 million and 28 million if scrapping is made compulsory. Utopian !
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We must note that even though the policy has been the talk of the town since 2015, the government has yet again missed the deadline. The recent pandemic may be blamed for the current delay.
In October 2019, draft guidelines on Authorised Vehicle Scrappage Facility (AVSF) released by the Ministry of Road Transport and Highway (MoRTH) detailed the infrastructure requirement and the procedure, streamlining the process for entities interested in entering this business .
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Courtesy our bureaucrats and political class, the original
Voluntary- Vehicle Fleet Modernisation Programme (VFMP) has now become Authorised Vehicle Scrappage Facility (AVSF). It can be better renamed again as "Autocratic Vehicle Scrappage Facility".
The link to the original V-VMFP for reference :-
https://www.livemint.com/Politics/au...d-GST-cou.html
The reporter again shows his total ignorance and ill-informed mindset by stating:-
Quote:
Globally, vehicles are usually scrapped within five to six years of usage. As a result, vehicles are not used as much and the parts can easily be employed for other vehicles thereby enabling proper recycling and less dependence on earth metals.
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What global practices is he talking about? Nowhere in the civilised world except in Japan are privately owned vehicles compulsorily scrapped. France is cautious with higher taxes on old, non-classic/vintage vehicles. China has a compulsory scrapping policy, but we cannot consider them as a civilised nation
It is such ill-informed and ignorant reporters who feed the bureaucrats and the political class with tutored data from certain vested interests, that are very damaging for people like us who own private cars and bikes.