Carmakers to offer ₹20,000 discount on new models this festive season. But there's a catch

3 months ago | 53 Views

Several automakers are planning to offer discounts on new vehicle purchases against scrapped old vehicles this festive season. After a meeting with the Union Minister for Road Transport and Highways, Nitin Gadkari, several passenger and commercial vehicle manufacturers have agreed to offer discounts of up to three per cent to the new vehicle buyers who will submit a scrappage certificate for their old vehicle. These discounts against the scrappage certificates will be applicable over and above the other discounts, which usually include direct cash offers, corporate benefits, exchange offers etc.

In an official statement, the Society of Indian Automobile Manufacturers (SIAM) has said that commercial vehicle manufacturers are willing to offer discounts for a limited period of two years and passenger vehicle manufacturers are willing to offer discounts for a limited period of one year.

In a post on his X account, Gadkari stated that 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. “This initiative will significantly advance our circular economy efforts, ensuring that cleaner, safer, and more efficient vehicles are on our roads. Congratulations and gratitude to the automobile manufacturers who have taken the initiative to participate in our Vehicle Fleet Modernization Programme. I trust that others will soon follow their lead and join us in this important endeavor," he further wrote.

Which automaker will offer how much discount

Among the luxury carmakers, Mercedes-Benz India has decided to offer a flat discount of ₹25,000 on new vehicle purchases against the scrappage certificate of old cars, which will be applicable over and above all existing discounts. Other passenger vehicle manufacturers like Maruti Suzuki India Ltd, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia Motors, Toyota Kirloskar Motor, Honda Cars, JSW MG Motor, Renault India, Nissan India and Skoda Volkswagen India will offer 1.5 per cent discounts on the ex-showroom price of their new cars or ₹20,000, whichever is less, against the passenger vehicles scrapped by the owner in the last six months.

The SIAM statement further stated that the details of the scrapped vehicles have to be linked to the Vahan system to be eligible for the discount. It also stated that the auto companies may voluntarily offer additional discounts on identified models. "As the car is not getting exchanged but only scrapped, hence between exchange and scrap discount, only scrappage discount will be applicable, " the statement further said.