GADA hails vehicle scrappage policy

VASCO
The Goa Automobile Dealers Association (GADA) has welcomed the vehicle scrappage policy announced by Finance Minister Nirmala Sitaraman to phase out old vehicles.

“Our parent body Federation of Auto Dealers Associations (FADA) is happy to note that the finance minister has finally announced the much-awaited Scrappage Policy. If we take 1990 as the base year, there are approximately 37 lakh Commercial Vehicles (CV) and 52 Lakh Passenger Vehicles (PV) eligible for voluntary scrappage,” said GADA President Prashant Joshi.
“As an estimate, 10% of CV and 5% of PV may still be plying on road. We still need to see the fine prints to access the kind of incentives which will be on offer and thus have a positive effect on retail," said Joshi.
He also stated that the 6,575 km of highway works proposed in Tamil Nadu, Kerala, West Bengal and Assam and another 19,500 km of work for Bharat Mala project would add fillip to the much-needed revival of CV, especially medium and heavy CV segment.
“The government’s reduction of customs duty on steel products to 7.5% will benefit Auto Original Equipment Makers. We hence expect the benefit to trickle down to end customers thus helping in boosting of demand," said Joshi.