Gadkari encourages OEMs to provide incentives on buying new vehicles after discarding old ones.

New Delhi: Nitin Gadkari, the Union Minister for Road Transport, urged Original Equipment Manufacturers (OEMs) on Wednesday to extend additional incentives to customers who purchase new cars after trading in their old ones.

The fee might be lower for smaller vehicles and can range from Rs 50,000 to Rs 1 lakh for trucks or buses, the minister added. He claimed that this action would encourage people to scrap their cars.

At the Society of Indian Automobile Manufacturers' (SIAM) 62nd annual conference, Gadkari remarked, "My appeal to you, I do not want to make it necessary because some businesses are ready and some are not is that you may provide certain discounts to those who have scrapping certificates".

He said that the finance ministry has been contacted by the Jyotiraditya Scindia-led steel and road transport ministries to request GST waivers for these reductions. Gadkari continued, So it may be a win-win situation for everyone.

He stated that each old truck produces as much pollution as 15 new vehicles, underscoring the necessity of dismantling. According to our records, 1.02 crore autos can be transported for scrap right now. Only 10 to 20 scrapping facilities exist, according to Gadkari.

There is potential to open three scrapping centres in each area, according to the Union Minister. You may buy copper, aluminium, steel, rubber, and plastic from such centres, which will also allow you to save 30% on the cost of your components. People who recycle their cars would boost the auto industry's, business by 25%-30%, he continued.

He also emphasised the rise in petroleum product imports to Rs 16 lakh billion. This is causing economic and pollution-related issues. There is a lot of traffic since there are more automobiles on the road, he remarked.

Gadkari emphasised the need of localization and advised the car sector to establish a list of the products it imports and conduct research to see how many of them can be produced locally.

Dependence on imports is a significant obstacle for the sector. You should provide a session to explore the rationale behind imports. What are your challenges? And what role can government have in lowering imports?, he said.

The minister urged the sector to concentrate on producing automobiles that are safer and of higher quality.

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