The announcement of a scrappage policy by the Central government is indeed a historic moment in the Indian automotive sphere and will go a long way in setting a new benchmark for India in the global context, said Venkatram Mamillapalle, Country CEO & Managing Director, Renault India Operations.

“We are on the cusp of a major breakthrough in the industry, firstly we saw advanced emission standards being adopted by the sector and now a move that is momentous on multiple fronts, besides presenting a huge business opportunity for the OEMs; the social impact of this move will be revolutionary; employment generation, significantly reducing pollution and bolstering road safety are just a few amongst many that come to mind,” he said in a statement.

Vehicle scrappage policy may come with tax breaks

The scrappage policy will help the Indian automotive industry match international standard, besides offering a much-needed reprieve for the auto, steel and electronics industry that was needing resuscitation after the onslaught of the Covid pandemic.

Scrappage policy will promote safer, cleaner vehicles, says auto industry

Spurring adoption

Mamillapalle is of the view that scrapping of older vehicles should be done in a scientific and environment-friendly manner.

A 5 per cent rebate from automakers, and various incentives from the government, will encourage people to come forward towards replacement of their old vehicles.

The guidelines will prove to be a boon in the long run, drawing customers to newer and efficient vehicles and, in turn, help India elevate to becoming the hub of automobile manufacturing in line with the ‘Make in India’ initiative.

“We strongly believe this policy will kick-start the revival of the Indian auto sector and the overall economy,” said Mamillapalle.

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