DO YOU WANT TO GIVE AN OLD CAR AND BRING IT TO A NEW HOME? SO FIND OUT WHAT BENEFITS YOU WILL GET FROM A SCRAPPING POLICY

DO YOU WANT TO GIVE AN OLD CAR AND BRING IT TO A NEW HOME? SO FIND OUT WHAT BENEFITS YOU WILL GET FROM A SCRAPPING POLICY

Scraping Policy Analysis:

Do You Want to Give an Old Car to a New Home? So find out what benefits you will get from a scrapping policy

The government today announced a new vehicle scrapping policy in Gujarat. Prime Minister Modi was virtually involved in the Investor Summit held in Gujarat today by Vijdio Conference. He has launched a vehicle scrap policy at the summit. Modi said that under the policy, not only the age of the vehicle will be scrapped but also the vehicles that are unfit in the fitness test will be scrapped. This means that the vehicle can be scrapped even when it is 10 years old. The government will invest Rs 10,000 crore for that. The Modi government had announced a scrap policy in the budget for the financial year 2020-21.

Giving an old vehicle in scrap in a scrap policy will get a certificate. You do not have to pay for registration when buying a new car with this certificate. Apart from that, some exemption will also be given in road tax. The new car will also save on maintenance. Older vehicles will also reduce the risk of accidents off the road. Older vehicles will also stop pollution and improve health.

So now let’s understand why this policy was brought by the government? How will the car owner benefit from this policy? How do you know if a car deserves scraping? Here are the answers to all the questions related to scraping …

What is a scrap policy?

This policy will require 15 and 20 year old vehicles to be scrapped. Commercial vehicles will be declared scrap after 15 years and private vehicles after 20 years. After this time, the registration of the car will also be canceled. In these circumstances there will be no other option but to give it in scrap. Due to this policy, the car owner will also get a subsidy to buy a new car from the government along with cash.

How to know if a car deserves scrap

If you have a car and it is 15 to 20 years old. So it has to be handed over to an automated fitness center or a registered vehicle scrapping facility at a specific time. The car owner must also show the required documents such as insurance, registration certificate, pen card, Aadhaar card. Your car will also be given some cash than scrap. Under this policy, the vehicle will not only be scraped based on its age but will also be scrapped in its fitness certificate if it proves unfit.

What are the benefits to a car owner over car scrap?

If the car owner scraps his car at the right time, he will be relieved to buy a new car. A certificate will be issued to its owner after the car is scrapped. This certificate must be displayed in the showroom when purchasing a new car. This will give the customer an additional 5 percent discount. This discount will be different from the discounts available during the monthly or festival season. It will also get rid of the vehicle registration fee. The purchase of a new personal vehicle will result in a 25 per cent rebate in road tax. While the buyer of a commercial vehicle will be given a 15 per cent rebate in road tax.

How will the government benefit from the scrap policy?

According to reports, the scrapage policy will be implemented soon after the cabinet passes it. Scrapage policy will work like a lifeline for the economy in times of epidemics. Scrapping old vehicles will reduce pollution. Consumers buying vehicles with new engines will reduce fuel consumption as well as reduce pollution. According to experts, the purchase of a new vehicle is likely to get a 50 to 100% GST exemption instead of a vehicle that goes into scrap. However, the final decision on this will be taken by the GST Council. The new policy is expected to fetch the government Rs 9,600 crore from GST and Rs 4,900 crore in the next five years. According to experts, after scrapping the old vehicle, the vehicle owner will buy a new vehicle, which will benefit the Center and the states to the tune of Rs 38,300 crore from GST. It will save Rs 2,400 crore from next year alone. Steel accounts for 50 to 55 percent of a vehicle. The scrap from these vehicles will fetch about Rs 6,550 crore worth of steel scrap and not so much scrap will have to be procured from abroad, which will reduce steel imports, which is likely to make the vehicles cheaper. Steel scrap worth Rs 1,500 crore will be available in the next one year alone. At present there are no organized units to extract steel in the scrap market, at the same time it has been observed that engines are removed from vehicles in scrap and used to make bogus vehicles.

Gujarat Auto Industries has a market of over 2200 crores

Gujarat’s auto industry market is over Rs 2200 crore per month. On an average, more than 23000 passenger vehicles (cars) and more than 6000 two-wheelers are being sold every month. Ahmedabad accounts for 25-30 per cent of the total vehicles sold in Gujarat. Manufacturing operations are taking place in the top auto industries in 100 km around Ahmedabad. Scrap policy as well as electric vehicles are being preferred. Gujarat is a hub in the auto-ancillary industries which will also emerge as a hub in the manufacturing of electric vehicles.

More than 60 lakh commercial and passenger vehicles in Gujarat More than 07 lakh 15-20 years old in Gujarat, scraps policy Excellent More than 2200 crore Gujarat’s auto industry market 24000 monthly sales of cars Monthly 10% of vehicles in Gujarat go to scrap The industry benefits

Gujarat Auto Industries has a market of over 2200 crores

Rs 500 crore will be invested in electric two-wheelers in Gujarat

Rising petrol prices and the government’s preference for electric vehicles are making small companies enter. In Gujarat, an average of 5-6 companies are selling electric two-wheelers and bikes. There are indications that more than Rs 500 crore will be invested in a year. But the growth of the sector will not accelerate unless sufficient number of charging stations are developed. To increase the prevalence of electric scooters, EmetrixMile will be launched in major cities of Gujarat under PBS Policy 2.0.

Why the need for a scrap policy?

There are many 15 to 20 year old cars in the country. Pollution is spreading from these vehicles. It is not advisable to drive such an old car on the road even in terms of safety. Many have neither seatbelts nor advanced safety, such as airbags. The chances of getting a head injury in an accident caused by a new vehicle are very low. That is why the government has implemented a policy of scrapping such old vehicles.

The scrap policy will create 50,000 new jobs

The policy will invest Rs 10,000 crore and create 50,000 new jobs. All the auto brands in the world are also in India. With this policy, the country’s auto sector economy will grow from Rs 4 lakh crore to Rs 6 lakh crore.

What happens if you don’t scrap an old car

The scrap policy proposes to charge a fee of up to Rs 15,000 for re-registration of an old car. Not only that, it is proposed to renew the fitness certificate for commercial vehicles every 6 months as well as increase the fitness certificate fee several times.

What will happen to your old car?

The scrap policy removes the provision to remove 15-year-old vehicles from the road, but such vehicles require a fitness certificate every year to operate. At the same time, the registration renewal fee has been increased from two to three times, which will attract motorists to sell old vehicles and buy new ones.

A total of 2.15 crore vehicles were sold last year

In FY20, the Indian automotive market has shrunk by 18 per cent. A total of 2.15 crore vehicles were sold in 2020. In which 7.17 lakh commercial vehicles were sold. That was a decrease of 29 percent. The market for three-wheelers fell 29 per cent to 6.36 lakh units. Similarly, the market for passenger cars and two-wheelers has also declined.