PANAJI
Auto dealers have appreciated the scrappage scheme, which they claim will reduce pollution and ensure vehicle safety, but they need clarity on the disposal of scrapped vehicles besides other concerns around the implementation.
The auto dealers also agreed the scheme will generate more business for them but they are concerned about consumers who may not have the financial means to afford a new vehicle, given that vehicles will be phased out after 15 years.
Although the government plans to provide a subsidy to those who dispose of their old vehicles and purchase new ones, there is uncertainty whether this financial assistance will be sufficient to cover the remaining high costs.
Four-wheeler owners could face problems. "Typically, two-wheeler owners switch to a new bike within 8-10 years, so it might not affect them significantly. However, it could pose financial challenges for four-wheeler owners," Vinay Cuncolienkar, Managing Director of Goa Rajee Auto Pvt Ltd, said.
Business Outlook
From a business perspective, this policy change will benefit auto dealers, Cuncolienkar added while also revealing that manufacturers are also into various technological innovations that are attracting customers.
The Priority Group MD, Parind Nashinolkar, expressed a similar opinion, stating that the scheme will improve their business and ensure that newer vehicles are on the roads. However, he also emphasised the need for a comprehensive policy.
"For auto dealers, this is a positive development as it will undoubtedly boost business and promote the use of newer vehicles on the road... The government has a responsibility to implement changes to prevent pollution and accidents caused by improperly maintained vehicles. We now have technologically advanced vehicles that are less polluting," Nashinolkar said.
Comprehensive
policy sought
While the policy could be advantageous due to probable risks associated with using a vehicle for more than 15 years, he further raised concerns on the fate of well-maintained vehicles with fewer kilometres on the road compared to those with more usage and yet fewer years on the roads.
"The policy should be more comprehensive. Commercial vehicles are one of the major contributors to pollution. This policy should cover all aspects," he said adding, "Certain vehicles with antique value or rare qualities are still allowed on the road in some countries, after checking their fitness. Non-commercial vehicles, which are properly maintained, should also be considered in this notification. Why impose a 15-year limit on them? Some people may not be able to afford a new vehicle, and this should be taken into account."
He also pointed out a policy in certain countries where vehicles are inspected by the authorities annually.
Cuncolienkar added that owners of over 15-year-old vehicles could be at risk on the roads.
Disposal & Pollution
The auto dealers also require clearer guidelines regarding the disposal of scrapped vehicles, including the proper handling of engines, oil, and other parts of the to-be scrapped vehicles.
"If these materials are kept for an extended period, they not only pose a risk of erosion but also threaten human safety and the environment," he said.
They are calling for the involvement of experts and improvements in the public transportation system to reduce the number of vehicles on the road.
Despite these concerns, auto dealers are optimistic about the introduction of new technology-driven vehicles that are eco-friendly.
Automobile dealers association raises concern over disposal
The State Chairman of the Federation of Automobile Dealers Association (an All India body) Prashant Joshi has also raised concern over the disposal of scrapped vehicles and questioned whether the government has plans to establish a dedicated centre for such vehicles.
"We welcome this scheme but these are several aspects that need to be considered. While the notification has been issued, there are no proper guidelines on how to scrap the vehicles, which agencies will be responsible for the scrapping process, and so on. We cannot simply abandon these vehicles on the roads. There needs to be a designated centre for their disposal," he stated.
Joshi, also President of the Goa Automobile Dealers Association, further said that just announcing will not do it.
"The policy is just on paper. Goa is a small state, although our vehicle population is huge than other states. We, therefore, need a (vehicle disposal) centre in Goa first. The government should have a centre," he added.
He also raised concern that no government has looked into scraping two-wheelers, which constitute 80 per cent of total vehicles. He has raised the matter with the Central government.
