NEW DELHI: Road transport and highways minister Nitin Gadkari on Tuesday said that an increase in scrapping of old vehicles can help the automobile industry to grow its sales of new vehicles by 18-20%.
The union minister also asked the auto makers to invest in setting up scrapping centres across the country.
“Germany has increased their sales by 12% while the United States has increased their sales by 15% (by setting up OEM-backed scrapping centre). I believe domestic auto industry sales in India will rise by 18% to 20%...
India has 3 crore end-of-life vehicles, but the country does not have enough scrapping centres to process these vehicles,” said Gadkari at the 64th annual convention of industry body SIAM.
Gadkari informed that ar present India has 63 operational vehicle scrapping centres, with 60 more under construction and an additional 40 in planning stage. The Centre had introduced the voluntary Vehicle Scrappage Policy in the Union Budget of 2021 to eliminate the inefficient and polluting vehicles on the road.