Auto majors have welcomed the new vehicle scrappage policy saying it would encourage people to replace old vehicles while boosting the sector.
The new policy presents a huge business opportunity for original equipment manufacturers (OEMs) and significantly reduce pollution while bolstering road safety, said Venkatram Mamillapalle, country CEO and MD, Renault India Operations.
Mr. Venkatram said the announcement would bring the Indian automotive industry on par with international standard, besides offering the much-needed reprieve for auto, steel and electronics industries that were in need of resuscitation after the onslaught of the pandemic.
This incentive-led announcement will lead to a reduction in pollution levels in the long run and boost the demand for new and environment-friendly vehicles especially in the personal mobility segment, said Nagesh Basavanhalli, Group CEO & MD, Greaves Cotton.
“Only a joint effort by the government, industry and the customers can result in a scrappage policy that offers true safety, economic and environmental benefits,” said Satyakam Arya, Daimler India Commercial Vehicles MD & CEO.
“The guidelines will prove to be a boon in the long run.We strongly believe this policy will kick-start the revival of the Indian auto sector and the overall economy.”
“Measures to impose a green cess and exempting vehicles running on environment- friendly technology will, in turn, augur well for EVs. We now look forward to State governments linking scrappage incentives with EVs and supporting their use for intra-city requirements in the commercial space,” said Saurav Kumar, Founder and CEO, Euler Motors, an automotive technology OEM.
