In a meeting today between Union Minister Nitin Gadkari and the delegation from the

Society of Indian Automobile Manufacturers

major

automakers

in India have agreed to offer substantial

discounts

on new vehicle purchases for customers who present a ‘

Certificate of Deposit

’ after

scrapping

their old vehicles. These automakers include both, commercial and passenger vehicle manufacturers.

Top Stories Tamfitronics Certificate of deposit: What is it and how to avail

A Certificate of Deposit, also known as a

scrappage certificate

will be issued to

vehicle owners

when an old vehicle is scrapped at an authorized scrappage centre. To obtain it, vehicle owners must take their end-of-life vehicle to a certified scrapping facility, where it will be dismantled. Post completion of the scrapping process, the document will be provided to the owners using which owners will be able to avail discounts on the purchase of a new vehicle from a host of manufacturers. Several commercial vehicle manufacturers have agreed to offer discounts for 2 years, while passenger vehicle manufacturers will provide discounts for 1 year.

Top Stories Tamfitronics Discounts on new vehicles after scrapping old: How much can be saved

Passenger vehicle manufacturers including Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai, Kia, Toyota, Honda, MG, Renault, Nissan, and Skoda Volkswagen are offering a 1.5 percent discount on the ex-showroom price or Rs 20,000, whichever is lower, for

new cars

when the old vehicle is scrapped within the last 6 months. Additional discounts may be offered by the companies voluntarily.
On the other hand, commercial vehicle manufacturers such as Tata Motors, Volvo Eicher, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu, and SML Isuzu have agreed to will offer a 3 percent discount on new commercial vehicles over 3.5 tonnes and a 1.5 percent discount on vehicles under 3.5 tonnes when the old vehicle is scrapped within the last 6 months. If using a traded Certificate of Deposit from a scrapped vehicle, the discounts are 2.75% and 1.25% respectively. This scheme may also apply to buses and vans.