India’s minister of roads and transport, Nitin Gadkari states his department intends to bring in the vehicle scrappage policy at the soonest. The minister recently held a meeting web conference with members of the Society of Indian Automobile Manufacturers (Siam). The policy is said to be in the final stages of formulation and could be announced once the concerned ministries fine-tune it.
The Indian auto sector is already struggling with demand challenges. The COVID-19 outbreak only intensified these challenges with production and sales, both coming to a standstill. Major auto players in the country like Tata and Ashok Leyland were already vying for an incentive-based scrappage policy as a driver of demand.
Gadkari believes the policy could turn India into an auto hub since the recycling of key raw material steel, aluminium could bring down automobile prices by 20-30pc.