Upto 3% Discount On New Car For Scrapping Old One: Nitin Gadkari

Ahead of the festive season, the Minister of Road Transport and Highways Nitin Gadkari, today said that automobile manufacturers will offer up to a 3 per cent discount on all new car purchases if the owner decides to scrap his/her previously owned vehicle. He was speaking at the 64th Edition of the Automotive Component Manufacturers Association (ACMA) convention in New Delhi. While this brings a lot of cheer for consumers looking for a new vehicle in the market, 3 per cent is not that high a discount.

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On a question whether this discount could go up, Gadkari said, “I am talking very frankly I don't need to make any request to anybody because everyone is coming to increase their sale and if you want to capture the market there is no option either you like it may not like it he has to increase the discount.”

Gadkari stated that India held a competitive edge when compared to other markets as it has the advantage of having low labour costs, producing high-quality products and also having rapidly advancing technologies. The government’s efforts to focus on the scrapping policy will also lead to a reduction of approximately 30 per cent (approximately) in manufacturing costs as materials like aluminium, copper, steel and rubber will be recycled.

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Talking further about the discount for consumers on new vehicles, the Minister said, “If the product is offered at a good rate or reasonable they (car manufacturers) will get a good turnover. If they are not ready for that they have to face the music. So these are very intelligent people, they understand the business so 100 per cent they are going to increase their discount and I don't need to tell them because they understand what is the benefit in there.”