India urges automakers to offer discounts in a fresh scrappage push

The Indian government’s appeal to automakers to support its voluntary scrappage scheme results in 1.5-3% discounts on new models against scrapped vehicles. Are they enough to move the needle?

In a significant development aimed at promoting India's circular economy, the Indian government has made fresh efforts to encourage the scrapping of old vehicles. Nitin Gadkari, the Union Minister for Road Transport & Highways, held a summit last week with a delegation of CEOs from the country’s apex automotive industry body, the Society of Indian Automobile Manufacturers. Soon after, Gadkari announced that several commercial and passenger vehicle manufacturers agreed to offer discounts for new vehicle purchases against the scrapping of older ones.