Scrapping old car might get you a 15% discount on new one

The Government of India could soon offer a discount of 15% on new vehicles to people who scrap their pre-Bharat Stage II four-wheelers (older than 12 years). With this step, it plans to cut down the pollution levels and at the same time, increase automobile sales in the country.

The road transport and highways ministry has drafted a voluntary vehicle fleet modernisation policy under which, anyone who scraps his pre-Bharat Stage II vehicle will be eligible for a discount of up to 15% (including manufacturer discount and rebate on excise duty) on a new vehicle. The government will issue certificates of discount to those who scrap their old vehicles. These certificates will have to be produced while purchasing new vehicles. This policy will be applicable to both, private cars and commercial vehicles.

The ministry is proposing a rebate of 60% rebate on excise duty, to the finance ministry, for people planning to modernise their fleet.

In total, there are more than 40 lakh pre-Bharat Stage II four-wheelers and about 60 lakh two-wheelers in India. These vehicles are said to pollute almost 10 times as much as vehicles that comply with Bharat Stage V emission norms.

Source: Economic Times