SIAM Requests Government To Use Current Dealers As Fitness Centres For Automobiles

The request/reaction comes after the Union Minister for Road Transport & Highways (MoRTH) Nitin Gadkari said that the government will also set-up testing centres across all districts using the public-private partnership. Ayukawa went on to say that, "If the government starts a special centre, such a centre will not be commercially viable and may take a long time to set up across India."

The implementation of the scrappage policy is likely lead to a cut in raw material costs by around 40 per cent. About Rs. 22,000 crore worth of scrap steel is imported in the country, and scrapping old vehicles will help reduce dependency.

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

Kenichi Ayukawa, President, Society of Indian Automobile Manufacturers (SIAM)

PM Modi had already outlined the benefits for customers and said that, "Firstly, a certificate will be given on scrapping of the old car, which will ensure that an individual does not have to pay registration fees while buying a new car. He will also get a discount on road tax. Secondly, a person will save money on maintenance cost, repair cost and fuel efficiency of the old car. The third benefit is directly related to life. There will be some relief from the high risk of road accidents due to old vehicles and old technology. Fourth, it will reduce the harmful impact of pollution on our health."

However, Ayukawa clearly outlined the benefits of converting a dealership into a fitness centre for vehicles and said that this would put additional responsibility on the dealerships. He said, "If the government accepts our request of using existing dealers as test centres, it will be a big statement of trust on the automobile dealers. I hope dealers realise this big responsibility. I also hope that dealers will live up to this trust and carry on with fitness testing with objectivity."