Gadkari suggests vehicle scrapping to boost auto sales by 18-20%
ECONOMY & POLICY

Gadkari suggests vehicle scrapping to boost auto sales by 18-20%

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)

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)

Next Story
Infrastructure Urban

3i Infotech Reports Rs 7.25 Bn Revenue for FY25

3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..

Next Story
Infrastructure Urban

Emerald Finance Joins Baya PTE to Boost SME Bill Discounting

Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..

Next Story
Infrastructure Urban

BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25

BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, “We are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?