MAHDY - India hopes scrappage policy will lead to 30% new vehicle sales growth

India predicts that new vehicle sales will increase 30% after its new scrappage policy is enacted in October, says Nitin Gadkari, India's minister for road transport and highways. Under the policy, owners that scrap their vehicles will receive 4% to 6% of the showroom price of the old vehicle, a road tax rebate, and have the registration fee for their new vehicle waived. Dealerships have been advised to give a 5% discount on new vehicle purchases if presented with a scrapping certificate. The new policy will attempt to phase out high-polluting vehicles and recover the metals and reusable materials present in old cars. Currently, private vehicles must undergo a fitness test at fifteen years of age and every five years thereafter. Tata Motors (TTM -3.3%) signed an agreement on Aug 13 to set up a 36,000 vehicle/year scrapping facility in the Indian state of Gujarat. Maruti Suzuki (OTCPK:SZKMY -3.4%) is also

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India hopes scrappage policy will lead to 30% new vehicle sales growth