Scrap Trap

Owing to the severe impact on the overall sales of automobiles in India, following the spread of Covid-19 pandemic, the Indian automotive sector is pinning its hopes on the long-awaited Vehicle Scrappage Policy to spur the growth of the sector. While the policy is expected to be before the Union Cabinet for approval, industry experts believe that the benefits of the policy can only be achieved by incentivizing purchase of new vehicles in exchange for scrapping older ones. However, despite repeated announcements and discussions with industry stakeholders, India’s Ministry of Road Transport and Highways is yet to receive a final clearance from the Union Cabinet, resulting in lack of clarity for the manufactures operating in this sector. Recently, Nitin Gadkari, India’s Minister for Road Transport and Highways announced that the much-awaited policy is soon expected to be before the Union Cabinet for approval. According to Gadkari’s latest interaction with society of Indian automobile manufacturers (SIAM), he has been reportedly pursuing the scrappage policy since last two years, and expects co-operation from the other ministries and stakeholders for its smooth implementation.  TURN OF SPEED spoke with multiple stakeholders to understand the exact benefits and impact of the scrappage policy. In the absence of