Indian scrapping policy was introduced as a means to get old are polluting vehicles off the road by enabling easy recycling by authorized scrap yards increasing fees for re-registration of old vehicles and by introducing lower taxes on registrations of new vehicles if the buyer had scrapped. Modeled on the United States cash by clunkers policy the hope was that owners of old cars would be tempted enough to scrap their vehicles and it could, of course, boost the countries struggling auto sector as well.

Indian Scrapping policy

But so far public embrace of the policy has been lukewarm. A survey by local circles goes somewhere in the understanding of the reasons of car owners. The server reported that most of the owners are not interested in changing their vehicle because it has gotten old. Out of 10,543 vehicle owners, 57% of vehicle owners said that the vehicle should be scrapped based on their odometer reading that is how many kilometers have the vehicle covered rather than the number of years. Last year government mandate said that personal vehicles older than 20 years and commercial vehicles older than 15 years would have to undergo a fitness test to stay on the road.

The people who participated in the survey also said that they are planning to reduce the number of cars that they own because the scrappage policy will make it more expensive to keep an old car in their garage. The prices of the fitness tests are increased from 1st April 2022. The price of renewing a 15-year-old vehicle used up to 600. The revised rate is 5000 and other prices related to the renewing of vehicles were also increased. India wants to turn net carbon zero by 2070 so there is a lot of time to take the policy for sure if old vehicles that pollute the air continue to run then the target would not be achieved by the year.

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So, recycling old cars has become crucial for the Indian market and the new vehicle that buyers of the old vehicles will buy will produce less pollution and there is a possibility that it could be also an electric vehicle. Having said that many people are still not buying an electric vehicle because of lacking charging infrastructure around the country. The other reason for people not to buy electric vehicles is that they are considerably more expensive when compared to their internal combustion engine coucounterpartsor instance, the starting price Tata Nexon IC powered one has a starting price of 7.55 lakh Ex-showroom whereas tthe he Nexon EV starts from 14.79 lakh Ex-showroom.

Indian Scrapping policy
Indian Scrapping policy

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The center for science and environment predicts that by 2025 India will have 20,000,000 old vehicles that are near the end of their lives and emitting a significant amount of pollution which will be causing damage to the environment the government expects that the program would attract fresh investments of more than $1.3 billion in the nation’s dependency on other countries for metals.