Nitin Gadkari To Mercedes-Benz: Set Up Vehicle Scrappage Centres In India

At the recently concluded launch of the Mercedes-Benz EQS 580 in India, Minister for Road Transport and Highways Nitin Gadkari called on Mercedes India to set up vehicle scrapping centres in the country. The set-up of scrapping centres falls in line with the central government’s vehicle scrappage scheme calling for owners to voluntary scrap their end-of-life vehicles.

Also see: Mercedes-Benz EQS 580 4MATIC Launched In India; Prices Start At Rs. 1.55 Crore

Speaking at the launch Gadkari said, “If automotive giants like you (Mercedes-Benz) can open joint ventures with 4, 5, 10, 20 units and they will give you aluminium, copper, rubber, everything from recycling. Your cost of components will be reduced by 30 per cent. That can be a great benefit.”

Also see: Need More Scrappage Centres, Can Reduce Component Costs; Nitin Gadkari

The Union Minister rolled out the first unit of the locally-assembled EQS 580 from Mercedes' plant in Chakan.

Gadkari said that over 1.2 crore vehicles had been identified for scrappage though the total number of centres was only 40 across the country. Gadkari said that he wanted India to target having 4 such vehicle scrappage centres per district with these centres helping to reduce the need for importing raw materials such as copper, aluminium, steel and plastics.

Also see: Discount On New Car After Scrapping Old One Cannot Be Made Mandatory: Nitin Gadkari

The vehicle scrappage policy was introduced in the parliament in early 2021 with the government recently making amendments to the policy to simplify the process. The latest amendments also made the entire process digital.

The government has been pushing the voluntary vehicle scrappage policy in a bid to reduce pollution on the roads. The idea is that older vehicles tend to pollute more than newer vehicles with scrappage not only taking the vehicles off the road but also offering OEM’s a source of recycled materials that could help reduce production costs.