PM Modi stresses on auto industry's push for greener alternatives

Those scrapping old vehicles must get discount on new purchase: Gadkari

Prime Minister Narendra Modi on Thursday stressed on the need for automobile industry’s innovation for green alternatives to ensure protection and conservation of environment as well as help in making India self-reliant.

In a written address to the 62nd annual session of the Society of Indian Automobile Manufacturers (Siam), Modi said, “Amrit Kaal is an opportunity to achieve self-sufficiency in every sector and the automobile sector is no exception.”

Addressing the convention,  Minister for Road Transport and Highways Nitin Gadkari said people scrapping old vehicles increase revenues of auto companies and should get discounts for new purchases. “My request to you — I do not want to make it mandatory because some companies are ready and some are not — is that the persons who have scrapping certificates, if you can offer them some discounts,” he said.

A discount of Rs 50,000-Rs 1 lakh can be given for big vehicles like trucks or buses and the amount can be less for smaller vehicles, he said, adding it “can be an incentive to get vehicles scrapped”.

Gadkari said he and Steel Minister Jyotiraditya Scindia have approached the Finance Ministry to give GST concessions for such discounts. “So it can be a win-win situation for everyone.”

There is potential to start three scrapping centres in each district. “Because of scrapping centres, you will get copper, aluminum, steel, rubber and plastic, and you can reduce the costs of your components by 30 per cent.” People who scrap their vehicles will increase the auto firms’ “business by 25-30 per cent,” he said.

Siam gets new president

Vinod Aggarwal was on Thursday elected Siam’s new president for 2022-23. Aggarwal, the MD and CEO of Volvo Eicher Commercial Vehicles, succeeds Maruti Suzuki India Executive Vice-Chairman Kenichi Ayukawa. “The Indian automotive industry is witnessing rapid adoption and focus on connectivity, e-mobility and alternate fuels, and other technological advancements, to provide the consumers with not just modern, but also safe and environment friendly vehicles,” Aggarwal said.