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Informist, Tuesday, Sep 10, 2024

 

--Gadkari: Commercial vehicles powered by hydrogen are the future 
--Gadkari: World-class vehicle testing facilities key to drive exports 
--Gadkari: Urge auto industry to support vehicle scrapping policy 
--Gadkari: Auto cos should establish more vehicle scrapping centres 
--Gadkari: Auto cos need to focus on safety standards for vehicles 
--Gadkari:India has 63 vehicle scrapping units, 60 under-construction 
--Gadkari:Vehicle scrapping policy to cut auto parts' cost for sector 
--Gadkari: Auto industry to benefit from recycling scrapped vehicles 
--Gadkari: Auto sector must choose better tech to lower emissions 
--CONTEXT: Road Minister Gadkari at SIAM Annual Convention 
--Gadkari: Need to seriously think about cutting emissions 
--Gadkari: Not against sale of petrol, diesel vehicles

 

NEW DELHI – Minister of Road Transport and Highways Nitin Gadkari today urged the auto industry to support the vehicle scrapping policy, which is being promoted by the government in a big way. He said the industry will have a huge cost benefit by recycling parts from old scrapped vehicles.

 

"Today, in Europe and the US, vehicle sales have gone up by 9-10?cause of scrapping. India has 30 mln end-of-life vehicles but lack of fitness and scrapping centres has become a hurdle. Industry needs to increase scrapping centres as it is an economically viable venture and will help the industry to get more profits. By scrapping, the industry will be able to reduce component cost by 30-40%, and because of that the profit margin will increase and reduce the cost of final product," Gadkari said at SIAM Annual Convention 2024 today.

 

In 2022, the government introduced a Voluntary Vehicle-Fleet Modernization Programme, or Vehicle Scrappage Policy, with the aim of phasing out unfit and polluting vehicles, and providing incentives for the same. The policy facilitated the setting up of necessary support infrastructure in the form of automated testing stations and registered vehicle scrapping facilities, making the scrappage industry organised.

 

Under the scheme vehicle owners get a Certificate of Deposit when they give their old vehicles for scrapping at registered scrapping facilities. This certificate can then be used for registration fee waivers, road tax concessions, and discounts from automakers on the purchase of new vehicles. Currently, companies such as Tata Motors Ltd, Mahindra & Mahindra Ltd and Maruti Suzuki India Ltd have scrapping facilities in India.

 

Gadkari asked auto manufacturers to establish more vehicle scrapping centres across the country. "As for the population of automobiles in India, we need more scrapping centres. If auto companies take the initiative, it will be a win-win situation for both the manufacturers and also for the government. This will strengthen our economy and create more jobs."

 

"Many big auto companies have taken initiative to set up scrapping facilities in India. Because of scrapping, sales have increased in countries like the US and Germany. In India, I think sales (of new vehicles) will increase by 18-20%, and that will be an additional benefit. This will also increase raw material recovery to 90%, reduce steel imports, and create new jobs. Currently, India has 63 operational scrapping centres, and 60 are under construction," Gadkari said.

 

On the growing numbers of road accident related deaths, Gadkari said it is important that the auto industry and government come together to address the issue. "World class testing agencies are very important, we have Bharat NCAP and because of the five-star rating, it is going to boost our exports at the same time consumers are very cautious and they are very quality conscious," he said. The safety ratings help in promoting healthy competition among vehicle manufacturers. 

 

On petrol and diesel vehicles, Gadkari said he was not against them. However, the industry needs to focus more on cleaner technology to cut emissions, and fuels such as green hydrogen, electric, compressed natural gas and liquefied natural gas are the future of the industry, especially commercial vehicles.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Sagar Sen and Darshan Nakhwa

Edited by Akul Nishant Akhoury

 

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