Categories: Ahmedabad

Scrappage policy to improve new cars, sales of CV, say dealers

Ahmedabad: After the Union Ministry of Road Transport and Highways (MORTH) launched a new vehicle scrappage policy, the car dealer believes it will help increase the sale of new cars and commercial vehicles.
This new policy is equipped with many incentives such as the neglect of vehicle registration fees purchased, the value of memo and road tax rebates, get a 10-year-old vehicle disposed of after a certain period of being an interesting proposition.
Dealers have projected a series of long-term benefits of the policy.
“In both commercial vehicles and passenger vehicles, new policies will increase the sale of new units.
There are provisions proposed for new car discounts on vehicle scrappage certificates, which rose to 4-5% of the cost of the former vehicle showroom.
This will certainly increase demand for vehicles New both in commercial and passenger segments, “said Pranaav Shah, Chair, Fada – Gujarat.
Dealers estimate that with this relief, the estimated cost of new vehicles will drop around 6%.
For commercial vehicles (CVS), where the settlement time to change vehicles is usually greater, the incentives will certainly encourage older CVS users to make their vehicles deleted and invest in new ones.
Dealers feel this will not affect requests in the used car market.
“The time for the settlement for people who change the car is reduced from 7-8 years to 5-6 years.
The vehicle scrappage policy has provisions to lock vehicles that are older than 20 years and this is still long, where users of both vehicles can use the car and then choose Scrappage and still take advantage of the purchase of their next new car, “said Jinmay Shah, head of business, city-based car dealers.
Industrial stakeholders estimate that in Gujarat, at least 15 commercial lakh and passenger vehicles will be directly eligible for the scrappage every time launched.
Although this can provide a big boost for the sale of new cars, dealers are afraid that the used car market must fight the situation of excess supply.
“With the scrappage policy in place, more people will have a tendency to get rid of their cars after a certain few years.
This will lead to excess supply situation in the used car market, so the overall cost of the former used car,” said Jigar Vyas, CEO of car dealers based Ahmedabad.

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