Passenger and commercial vehicle makers will offer discounts ranging from 1.5 to 3 per cent to buyers if they have scrapped their older vehicles.
Buyers will have to produce a scrappage certificate and should have scrapped their vehicles within six months of purchasing a new one.
Mercedes Benz India has offered an extra discount of ₹25,000.
The decision was taken after industry representatives met road transport and highways minister Nitin Gadkari on Tuesday, an official statement said.
Commercial vehicle manufacturers will offer discounts for two years, while passenger vehicle manufacturers will offer for a year. Besides, buyers will not get an exchange discount, if they avail themselves of scrappage discount.
“As the car is not getting exchanged but only scrapped, hence between exchange and scrap discount, only scrappage discount will be applicable, “ it said.
Eleven car makers will offer the discount: Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai, Kia, Toyota, Honda, JSW MG Motor, Renault, Nissan and Skoda Volkswagen India.
They will offer a 1.5 per cent on the ex-showroom price of a new car, or ₹20,000 (whichever is less).
Commercial vehicle makers — Tata Motors, Volvo Eicher, Ashok Leyland, Mahindra & Mahindra, Force, Isuzu and SML Isuzu — will offer a discount of 3 per cent on a cargo vehicle weighing more than 3.5 tonnes.
For those scrapping a commercial cargo vehicle with a gross vehicle weight of more than 3.5 tonnes, the discount will be 2.75 per cent of the ex-showroom price. This scheme may also be extended to buses and vans.
The statement pointed out that individual passenger vehicle manufacturer may have the liberty to extend this discount only on the identified models, within their vehicle portfolio.
According to sources, the meeting was attended by top officials of the automobile industry, including SIAM president Vinod Aggarwal, Maruti Suzuki India MD & CEO Hisashi Takeuchi, Tata Motors ED Girish Wagh, Ashok Leyland MD and CEO Shenu Agarwal and TVS Motor CEO K.N. Radhakrishnan.
