Budget misses scrappage policy which is key for CV revival, says industry

Icra maintains a stable outlook for the domestic CV industry, expecting it to grow in the range of 7-9% during FY2020

Belying the hopes of commercial vehicle (CV) makers, the much-awaited policy of scrapping old vehicles was missing in the Budget.

The industry said if the policy was announced, it would have taken 28 million vehicles bought before March 2005 off the road. The vehicle-scrapping policy was given “in-principle” approval at a high-level inter-ministerial meeting at the Prime Minister’s Office to pave the way for scrapping commercial vehicles (CVs) from April 1, 2020.

Rajan Wadhera, president, Society of Indian Automobile Manufacturers (Siam), and president, automotive sector, Mahindra & Mahindra, said “The industry had expected that a voluntary scrappage policy would be announced.”

While Ashok