Planning to buy a new car? Here's how scrapping your old vehicle can give you major discounts

For those people who are planning to buy a new car or any other vehicle, scrapping the old vehiclecan now prove beneficial as commercial and passenger vehicle manufacturers are willing to offer a discount if they have a valid Certificate of Deposit.

Union Minister for Road Transport & Highways Nitin Gadkari announced the discounts in a meeting with the representatives of commercial and passenger vehicle manufacturers.

He appealed to the industry to give discounts on purchasing new vehicles to the customers who scrap their old vehicles.

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The Society of Indian Automobile Manufacturers (SIAM) CEOs meeting took place at Bharat Mandapam in New Delhi where it was then confirmed that the proposal of the minister was accepted by the automobile manufacturers.

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Taking to his official social media account, the minister announced, “I am pleased to report that, in response to my recommendation, several commercial and passenger vehicle manufacturers have agreed to offer discounts for the purchase of new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit.”

Explaining the importance of this development, he said, “This initiative will significantly advance our CircularEconomyefforts, ensuring that cleaner, safer, and more efficient vehicles are on our roads."

How much discounts will be given to customers for passenger vehicles?

According to a report published in The Times Of India, auto majors are likely to give a 1.5-3.5 per cent discount to buyers who scrap their old vehicle when buying a new one.

As per the reports, passenger vehicle manufacturers like Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra, Kia,Honda, Toyota, JSW MG Motor, Renault India, Nissan India, Skoda and Volkswagen India have agreed to offer a 1.5 per cent discount on the ex-showroom price of the newcar or Rs 20,000, whichever is less.

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Customers can get a discount if they have scraped a passenger vehicle in the last six months and the scrapped vehicle's details are linked to the Vahan system.

As per the official statement, passenger vehicle companies like Tata Motors, Volvo Eicher Commercial Vehicles,Ashok Leyland, Mahindra & Mahindra,Force Motors, Isuzu Motors and SML Isuzu have agreed to give a 3 per cent discount on ex-showroom prices on commercial vehicles more than 3.5 tonnes and around 1.5 per cent discount on ex-showroom prices for CVs less than 3.5 tonnes.

(With inputs from agencies)