Discount on buying a new car after scrapping the old car | Discount on buying a new car after scrapping the old car: Automobile companies agreed to give 1.5% to 3.5% discount

If you buy a new car after scrapping your old car, you will get a discount from the automobile companies. The companies have agreed to give a discount of 1.5% to 3.5%. At the same time, some top luxury car manufacturers have agreed to a discount of about Rs 25,000.

Transport Minister Nitin Gadkari has given this information by posting on his official platform X. Nitin Gadkari went to a meeting of SIAM CEO delegation held at Bharat Mandapam in Delhi today (27 August). However, it is not yet clear which companies have agreed to give such discounts.

Gadkari posted that, ‘On my suggestion, some passenger and commercial vehicle manufacturers have agreed to give discounts to those who have a valid deposit certificate for scrapping old vehicles. This will accelerate our efforts to create a circular economy and ensure that clean, safe and better vehicles reach the roads.’

The government wants to control pollution
The government has taken the initiative to reduce vehicle scrap through the new Vehicle Scrap Policy from 2021, so that pollution can be controlled by removing old vehicles.

Even during scrapping, the vehicle owner gets 5-6% of the ex-showroom price of the vehicle. Apart from this, there is a discount in the policy. Now the manufacturers will also give discounts, which will motivate people more to buy a new vehicle.

Up to 25% discount is available on road tax
According to ET report, under the Vehicle Scrappage Policy 2021, customers can avail up to 25% discount on the price of the new vehicle or road tax after scrapping the old vehicle. This discount is being given in Bihar, Madhya Pradesh, Karnataka, Kerala, Gujarat, Punjab, Uttar Pradesh, Haryana and Maharashtra.

In Karnataka, there is a fixed discount on road tax. Here, a discount of Rs 50,000 is given on a vehicle costing more than Rs 20 lakh. Whereas, in Haryana, a rebate of 10% on the price of the vehicle or 50% of the scrap value, whichever is less, is given. Similar discounts are being given in other states as well.

1.2 lakh vehicles have been scrapped so far
Despite the efforts of the government, voluntary scrapping of vehicles has not picked up pace due to several reasons. So far, about 1.2 lakh vehicles have been scrapped at registered scrapping centers and out of these, about 61,000 government vehicles are older than 15 years. The target is to scrap about 90,000 old government vehicles by March 2025.