Indian Automotive Industry Reacts To The Launch Of The Voluntary Scrappage Policy

The voluntary scrappage policy has been finally launched and this will have a big impact on the automotive sector at large. Apart from improving new vehicle sales, the policy also aims to remove polluting cars off the road, and push for safer and cleaner vehicles. It will also help create new jobs while reducing metal and crude oil. In his address at the launch, Prime Minister Narendra Modi said that the scrappage policy is expected to attract investments of up to Rs. 10,000 crore. While Tata Motors has announced a scrapping plant in Gujarat, other automakers have welcomed the new policy. Here's what the industry has to say.

Also Read: Prime Minister Modi Launches The Voluntary Automotive Scrappage Policy In India

This scrappage policy will provide the much-needed impetus in countering the old methods of scrapping material, which was counterproductive, says Renault

Venkatram Mamillapalle, Country CEO & Managing Director, Renault India

"The move by the Hon'ble Prime Minister in launching the Vehicle Scrappage Policy is a welcome move after the initial policy was formulated in March 2021 and shall support the auto industry of the new age 'Bharat'. This scrappage policy will provide the much-needed impetus in countering the old methods of scrapping material, which was counterproductive. The new policy was imperative, long-awaited and will support the automobile industry and the ancillary support industry creating a win-win for all. The framework will augur greater investments and significantly prune the raw material cost and will support the refurbishment of sheet metal recycling. The scrappage policy is a panacea that will provide the right propulsion in form of generating employment in the auto ancillary/scrappage space and make the sector more organised."

Also Read: Tata Motors Partners With Gujarat Government To Set Up Vehicle Scrapping Facility In Ahmedabad

This far-reaching move will create a positive impact not only for customers and the environment, but also provide a boost to a circular economy, says Kia India

Hardeep Singh Brar, Vice President & Head of Sales and Marketing, Kia India.

"This launch of the much-awaited Vehicle Scrappage Policy could well be the game-changer that will ensure only environmentally friendly and safe vehicles are driven on Indian roads. This far-reaching move will create a positive impact not only for customers and the environment, but also provide a boost to a circular economy. The Hon'ble Prime Minister's announcement will also help create greater avenues for industrial production and creating employment opportunities across allied sectors in the auto industry. We welcome this move by the government as it will boost the demand for newer cars, keeping in mind a fair treatment for all stakeholders involved in the entire process."

This new policy has inevitably paved the way towards e-mobility as more families have become open to the idea of using electric bicycles and scooters for their intra-city commute, says GoZero Mobility

Ankit Kumar, CEO - GoZero Mobility

"The Vehicle Scrappage Policy brought in by our Hon'ble PM Modi, is greatly welcomed by GoZero Mobility, the overall industry and the consumer markets alike. Due to economic constraints, many families are unable to move away from their decades-old polluting vehicles and towards newer ones, let alone EVs. Fortunately, the Scrappage Policy enables families to give away their old vehicles and incentivise them and to allow them to look towards e-mobility, not just for sustainability, but to maintain their operating expenses lower than ever. This new policy has inevitably paved the way towards e-mobility as more families have become open to the idea of using electric bicycles and scooters for their intra-city commute. With the new policy in place, consumers will get more incentives to scrap their older vehicles and opt for new eBikes and other forms of electric Mobility. We at GoZero Mobility have been anticipating the release of such a policy which would further bolster our Switch campaign to get people to start using electric bicycles for their daily intra-city commute.