OverdriveMar 19, 2021 18:51:48 IS
The central government has announced some of the intricacies of the vehicle scrapping policy as outlined by EU Minister for Roads, Transport and Highways, Nitin Gadkari. These include the incentives for scrapping an old vehicle as well as the incentives for re-registering an older vehicle or obtaining the fitness certificate. It is important that the scrapping policy is voluntary and owners of commercial vehicles over 15 and private vehicles over 20 can continue to drive their vehicles on the road if their vehicles pass the proposed new fitness test rules that will come into force on October 1, 2021.
The new fitness tests will come with higher fees, as will the issuance of fitness certificates, and re-registration fees (up to eight times higher for personal vehicles, up to 62 times higher for resumes) will also be increased to prevent older people from running Vehicles. Vehicles that do not renew the FC are deregistered and declared as “old vehicles”. The mandatory tests for heavy-duty vehicles will come into effect on April 1, 2023, while for other private vehicles they are expected to start in phases from June 1, 2024. The scrapping of government and PSU vehicles is scheduled to begin on April 1, 2022.
Elsewhere, as expected, new car buyers are being offered incentives to scrap their old vehicles, both from automakers and the scrapping center. While the final discount on buying a new car when scrapping an old car is likely to vary from manufacturer to manufacturer, it is estimated that the value can be anywhere from two to five percent of the cost of the new car. Similarly, the scrap value of the old car is estimated at four to six percent of the pre-showroom price of the car when new. Other incentives are expected to range from a new car registration fee exemption to a 25 percent discount on road tax for a new car purchase when an old car is scrapped for a new one.
