Gadkari advocates for OEM-backed vehicle scrapping centres to boost auto sales

Union Minister for Road Transport and Highways has been a staunch advocate of the vehicle scrappage policy in India. At the 64th SIAM convention on Monday, he again advocated for a streamlined vehicle scrapping system to boost the country's automobile industry. The minister said that the auto makers in India can register an 18 per cent sales growth if they set up vehicle scrapping centres themselves.

Gadkari believes that like their counterparts in Europe and US, where automakers have been able to register 12 per cent and 15 per cent sales growth, respectively, by setting up OEM-backed vehicle scrapping centres, Indian auto manufacturers can see 18 per cent sales surge, if they establish scrapping centres.

The minister stated that vehicle scrapping is beneficial for all the stakeholders of the industry. “Need to convert knowledge into wealth, we need your cooperation for our scrapping policy. My suggestion today is that in US and Europe, scrapping is beneficial to all. India has three crore end of life vehicles, our fitness and scrapping centers need attention. Manufacturers can benefit from scrapped materials, it is a win-win situation," Gadkari said at the event.

He further said that Indian automotive industry has the capability to make India the largest automotive manufacturing hub in the world. speaking further, the minister said that up to 40 per cent of air pollution comes from fossil fuel vehicles and keeping an eye on that, the government is emphasising on cleaner fuel technology. “I am not against petrol and diesel but from health point of view, we need to protect our people from air pollution. If we want to be carbon neutral by 2070, we want to think seriously about this issue," he added.

Vehicle Scrappage Policy in India

The Indian government introduced voluntary Vehicle Scrappage Policy in the country in Union Budget 2021 with an aim to eliminate the inefficient and polluting vehicles on the road. According to this policy, private vehicles above 20 years and commercial vehicles above 15 years will have to undergo fitness test at authorized fitness centres. Only the vehicles that are certified as fit will be allowed to ply on roads, and rest will be sent in vehicle scrapyard.

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