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May 3, 2024

Revitalize Your Ride: Save Big on Your Next Vehicle Purchase with State Rebates

Are you holding onto an old vehicle, unsure of what to do with it? It might be time to consider scrapping it and taking advantage of the lucrative incentives offered by various states in India. The government’s recent announcement of incentives for scrapping old vehicles and purchasing new ones aims not only to reduce pollution but also to revitalize the automobile sector.

Under the Vehicle Scrappage Policy, customers who scrap their old vehicles and buy new ones can enjoy significant concessions in vehicle prices or road tax, with discounts of up to 25 percent for personal vehicles and 15 percent for commercial vehicles. This policy, part of the government’s broader efforts to phase out old and unfit vehicles, is gaining traction across states like Bihar, Madhya Pradesh, Uttar Pradesh, Haryana, Karnataka, Maharashtra, Gujarat, Punjab, and Kerala.

According to Amit Lakhita, founder and CEO of Park+, there are over 5 crore (50 million) private LMVs (light motor vehicles) on Indian roads that are over 15 years old, contributing significantly to air pollution and posing hazards to other vehicles. Lakhita emphasizes the importance of a robust scrapping policy, accessible to both vehicle owners and the government, which can positively impact the Indian auto industry.

Understanding the Vehicle Scrappage Policy

The Vehicle Scrappage Policy mandates that commercial vehicles older than 15 years and passenger vehicles older than 20 years undergo fitness and emission tests to determine their roadworthiness. Automated testing stations and vehicle scrapping provisions will be established in phases to facilitate this process.

As per the rules for 2024, the maximum life of a motorcycle will be seven years or 1,20,000 km, whichever comes earlier. Similarly, LCVs will have a lifespan of six and a half years or 1,50,000 km, while Heavy Commercial Vehicles will be allowed a maximum of 10 years or 4,00,000 km.

For all other vehicles, including private cars, the maximum life is capped at 15 years, after which they must be scrapped. Delhi stands out as the only state with a policy automatically deregistering diesel vehicles older than 10 years and petrol vehicles older than 15 years, mandating their scrapping.

State Rebates and Incentives

Several states are offering attractive rebates and concessions to incentivize vehicle scrappage:

  • Karnataka: Offering a fixed rebate in road tax based on the price of the new private vehicle, such as Rs 50,000 for vehicles costing over Rs 20 lakh.
  • Uttarakhand: Providing a 25 percent concession or Rs 50,000 (whichever is lower) for private vehicles.
  • Puducherry: Offering a 25 percent concession or Rs 11,000 (whichever is lower) for private vehicles.
  • Haryana: Providing a 10 percent concession or a maximum of 50 percent of the scrap value for private vehicles.

These rebates aim to make purchasing new vehicles more affordable while encouraging the scrapping of old ones, thereby reducing pollution and rejuvenating the automotive industry.

Conclusion

Scrapping your old vehicle not only benefits the environment but also offers substantial savings on your next vehicle purchase. With various states offering attractive rebates and concessions under the Vehicle Scrappage Policy, now is the perfect time to revitalize your ride. Take advantage of these incentives, contribute to reducing pollution, and drive towards a greener and more sustainable future.

Jhumpa Lahiri

Jhumpa Lahiri

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