Chennai
The automobile industry of Tamil Nadu is divided over the Centre’s new vehicle scrapping policy.
It requires that 15 years old commercial vehicles and 20 years old private vehicles failing the fitness tests should be off the road. While automobile dealers have welcomed the government decision, the used car industry is not upbeat on the move. The order would affect around 16 lakh vehicles in Tamil Nadu with 3 lakh vehicles in Chennai alone.
The new policy provides a person tax concession up to 25% if anybody volunteers to scrap the vehicle as also a waiver in the registration fee during the purchase of a new vehicle. The Centre has directed manufacturers to provide discounts to those who have provided the vehicle scrapping certificate.
However, used car dealers are not keen on the decision. Wilson Joseph of BRK automobiles, said that, irrespective of the years in operation, there are well maintained private cars and the new policy does specify what is in store for the second-hand market of used cars. The decision has also not gone down well with the lorry owners.
Coming out against the decision. Yuvaraj, president, Tamil Nadu Lorry Owners association, stated that, almost 85% of the medium and small-sized lorries that are used to transport goods are overaged and if all these trucks and lorries are dismantled at one go, the industry would be affected as there would be vehicle shortages leading to a spiralling of prices of essential commodities.
Source: DTNEXT
Image Source: Google Images
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