Schedule a Call Back
Gadkari suggests vehicle scrapping to boost auto sales by 18-20%
Industry News- Sep 13,24
Currently, India has 63 scrapping centers and 78 fitness centers, with plans for more.
Union Minister Nitin Gadkari has urged automakers to embrace vehicle scrapping as a way to increase sales by 18-20%. Speaking at the annual meeting of the Society of Indian Automobile Manufacturers (SIAM), Gadkari emphasised that establishing scrapping and fitness centers could significantly boost revenues for automakers. He also recommended offering a minimum 3% discount on new vehicle purchases when customers scrap their old vehicles.
India has nearly three crore end-of-life vehicles, and the scrapping policy presents a win-win opportunity for both the industry and the government. Gadkari highlighted that in markets like the US and Europe, vehicle scrapping has led to a 9-12% increase in sales. He further explained that scrapping could reduce the cost of components by 30-40%, improving profit margins for manufacturers.
Currently, India has 63 scrapping centers and 78 fitness centers, with plans for more. These centers have already attracted Rs 100 billion in investments, creating 35,000 jobs and reducing steel imports by 65 lakh tonnes.
The minister also called on automakers to adopt electric vehicles (EVs) and alternative fuels to contribute to India’s carbon-neutral goals by 2070. He noted that the transport sector accounts for 30-40% of the country’s air pollution and emphasised the need to focus on sustainability.
Gadkari also pointed to shifting consumer preferences, stating that buyers are now more focused on quality rather than cost, urging manufacturers to prioritise design, quality, and technology in their offerings. He also stressed the importance of enhancing vehicle safety through crash testing facilities and expanding India’s Bharat NCAP safety ratings to match global standards.
Lastly, Gadkari encouraged the auto industry to explore biofuels, ethanol, and CNG as alternatives to fossil fuels and emphasised the need for domestic lithium-ion battery production to reduce costs and position India as a key exporter.
(Mint)
Related Stories
Auto & Auto Components
RSB Group celebrates 50 years of automotive journey; Aims 3x growth in 3-4 years
The company has adopted a strategic revenue mix, aiming for 75% from traditional auto components and 25% from EV components over the next five years.
Read moreAuto & Auto Components
Setco Auto reports record-breaking H1 FY25 revenue and EBITDA growth
The EBITDA margin for Q2 FY25 stood at 16.2%.
Read moreAuto & Auto Components
Bharat Forge Q2FY25 results
BFL group's defence business posted revenue of Rs 5.09 billion in Q2 registering a jump of 67% YoY.
Read moreRelated Products
Tata Motors unveils facilities for development of Hydrogen propulsion tech
AUTO COMPONENTS & ACCESSORIES
Tata Motors, India?s largest automobile company, unveiled two state-of-the-art & new-age R&D facilities for meeting its mission of offering sustainable mobility solutions. The unveilings constitute of Read more
Tata Motors plans petrol powertrain for Harrier and Safari SUVs
AUTO COMPONENTS & ACCESSORIES
Tata Motors is in the process of developing a new petrol powertrain for its premium sports utility vehicles, the Harrier and Safari, as confirmed by a senior company official. Currently, these models Read more
Electric Vehicle Charger
AUTO COMPONENTS & ACCESSORIES
RRT Electro is engaged in manufacturing of customized Power Electronic Products over two decades having capability to Design, Develop, Prototyping, Regulatory Compliance testing & Certification, Manuf Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
