Indian Automotive Sector

RISING SUN

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FAQ| Vehicle Scrappage Policy Launched in India: Benefits and Clauses Explained - Check Here​

Prime Minister Narendra Modi launched the much awaited Vehicle Scrappage Policy in India today at the Gujarat Investor Summit. The policy was first presented at the Union Budget 2021 by Finance minister Nirmala Sitharaman. Soon after, Union Minister for Road, Transport and Highways Nitin Gadkari revealed the details of the policy at a Lok Sabha session and notified the new vehicle scrappage policy. While the new scrappage policy is voluntary, it would require mandatory fitness tests for vehicles after certain duration. We try to decode what exactly is the new scrappage policy and why industry is beaming with hope. Here’s our FAQ:

What exactly is Vehicle Scrappage Policy?​

Much like the western countries, the scrappage policy comes into effect when a vehicle’s registration is complete. In general, a passenger vehicle has a life of 15 years and a commercial vehicle has a life of 10 years, after which they become obsolete and also starts polluting the environment at a greater intensity than they would have been doing earlier. In western countries, these old vehicles are sent to scrapyards where they are dismantled and the steel used for making the body is crushed and recycled again. In India though, there was no such policy. Most of the vehicles either are on run currently polluting the environment or are lying at road sides.

What does the policy aim to achieve?PM Narendra Modi Launches Vehicle Scrappage Policy in India, to Begin from 2023As explained above, a vehicle should be scrapped at the end of its lifecycle so that they are stopped running on roads that will reduce air pollution. Also, getting off older vehicles will generate space for new vehicles, which will boost the sales in the otherwise battered and bruised Indian auto industry. Nitin Gadkari explained that once the registration of the vehicles are over, they will have to go mandatory fitness test. However, they can also avail scrapping option.


Will all vehicles over and above time limit will be scrapped?​

No, not all vehicles will be scrapped as this is a voluntary scheme and not a mandatory one. However, there’s a catch here. All vehicles over and above the time limit will have to undergo mandatory fitness test. If a vehicles fails fitness test, they will not get renewal certificate and won’t be able to run on road. However, if they pass fitness test, they will have to undergo fitness test after every 5 years again to show their road worthiness.

What benefit will I get from scrapping my vehicle?​

Nitin Gadkari has given following financial benefits one can get from the policy-

1) A scrap value of the ex-showroom price of vehicle ranging from 4-6% will be given to the owner if they choose to scrap the vehicle

2) A rebate of upto 25% will be given in Road Tax

3) Vehicle manufacturers will be advised to give 5% discount on new vehicles against a scrapping certificate

4) No registration fees for vehicles.

What is a fitness test?​

A fitness test, much like Pollution Under Control (PUC) certificate test, determines the road worthiness of a vehicle and checks if the vehicle is harming the environment. But that’s one aspect of it. Various other tests like brake test, engine performance among others will be in place to check the quality of the vehicles. A fitness test, according to Nitin Gadkari, will be conducted at automated fitness centres.

These centres will be established under PPP model and it is estimated that each fitness test will set you back by at least Rs 30,000-40,000 and a green cess will also be levied while renewing the vehicle registration. Govt is hoping that all these additional costs will dissuade vehicle owners from retaining the vehicle.

What happens if my vehicle doesn’t pass the fitness test?​

Simply put, you won’t be given a renewed registration certificate which means your vehicle is not registered to run on the road. As per the MV Act, it’s illegal to drive a car without a RC. Reports suggests that you can undertake a fitness test only three times post which your vehicle will anyways won’t be road worthy.

From when is the policy applicable?​

While the policy has been launched by PM Modi today, it will take time to implement the policy on the ground level as scrapping centres are not ready yet. “From 2023 onwards, heavy commercial vehicles need to be scrapped if they do not conform to the fitness level prescribed under the rules. For personal vehicles, we plan to implement this from June 2024 onwards,” said Giridhar Aramane, secretary in the road transport and highways ministry.
 

AbRaj

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Dec 6, 2017
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Republic of Wadiya
DEC8D3FB-3E85-4454-835F-3D2BD0D57B07.png


this was the prototype vehicle by Tata motors named Magna. It looked outstanding Reasons still unknown to why this car never saw the light of day. The Magna was another large sedan project from Tata Motors that never got to see despite the carmaker’s rather big plans for it. Tata put the Safari’s 120 Bhp 2.0-litre engine under the bonnet. The larger 3.0-litre 135 Bhp diesel engine from the same SUV was also expected to arrive with the sedan. The Magna was a rear-wheel-drive sedan that was supposed to take on the Honda Accord and the Hyundai Sonata, but it was shelved by Tata Motors.

The Vehicle that never got Launched.
Source: Nibba Haldilal
 

AbRaj

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Dec 6, 2017
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Republic of Wadiya
Upcoming Mini SUV

265D91C6-EDFB-487B-B518-67B963AA6676.png

Can’t understand why a billion dollars company who owns JLR, can’t design a decent looking front grill in an otherwise elegantly designed car. Lower grill is looking atrociously plasticity. Even my Home windows have better looking grills that this thing

PS: at least they finally got the frontal fascia and headlights cluster right. Even grill (upper) is welcome upgrade to previous gen more rounded design

PS2: they should update the headlights cluster of Harrier too and make it more simple like this one or just go for full led setup like modern Hyundais
 
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RISING SUN

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Dec 3, 2017
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Tesla gets approval for four models from India’s testing agencies

Electric vehicle giant Tesla has cleared the homologation stage for all the four models/variants it had sought approval for in India paving the way for their launch.

As per information shared by the Centre-controlled Vahan Sewa, Tesla India Motors and Energy, the India subsidiary of Tesla Inc. has received approvals for all four of its vehicle variants. Homologation is a process that certifies a particular vehicle is roadworthy after meeting all the specified criteria.

It was not immediately clear which models or variants these were but multiple test cars of Tesla have been spotted regularly on Indian roads. Model 3 and Model Y have been seen testing in India since the past several weeks.

The approval, however, does not mean an immediate launch. Tesla, which has sought lowering of import duties from the Indian government, is yet to finalise its launch plans. The company is hoping to have a cheaper price tag on its cars which is otherwise not possible due to the steep import duties.

Import duty on EVs in India is 100 percent if CIF (cost insurance and freight) value is more than $40,000 and 60 percent if CIF value is less than $40,000.

The Model Y and Model 3 of Tesla are priced in the range of $38,700 to $41,200. Both models made up 90 percent of Tesla’s volumes in 2020. The balance share of 10 percent came from Model S and Model X which are priced in the range of $81,200 and $91,200.


In 2018 the government relaxed norms, permitting manufacturers to import and sell 2,500 vehicles per year without the need for homologation in India. A compliance certificate from the country of origin would suffice.
 
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Parthu

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Dec 1, 2017
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new J-platform Classic 350 revealed today. It was as I expected - the things people loved (the styling, proportions or basic design) is carried over but the things people hated (vibrations, dated frame etc.) have been revamped heavily using Meteor's tech.

Seems a LOT more refined & ready to take on Indian & global markets. The Classic/Bullet has been RE's biggest selling bike in domestic market and it seems they're set to sell even more now that some of the traditional gripes with the platform (to include lack of fuel gauge) are now addressed.


P.S. noticed a nice uptick in Eicher's shares today. 🤤

@Milspec
 

Milspec

सर्वदा शक्तिशाली; सर्वत्र विजय
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Dec 2, 2017
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new J-platform Classic 350 revealed today. It was as I expected - the things people loved (the styling, proportions or basic design) is carried over but the things people hated (vibrations, dated frame etc.) have been revamped heavily using Meteor's tech.

Seems a LOT more refined & ready to take on Indian & global markets. The Classic/Bullet has been RE's biggest selling bike in domestic market and it seems they're set to sell even more now that some of the traditional gripes with the platform (to include lack of fuel gauge) are now addressed.


P.S. noticed a nice uptick in Eicher's shares today. 🤤

@Milspec
:)
Yupp, I was watching the Be Reborn space on re for last two days.

Now I hope they stick a 650 in the frame and bring back the constellation.

1630544241617.png
 

Parthu

Gessler
Team StratFront
Dec 1, 2017
973
1,952
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Vizag, India
:)
Yupp, I was watching the Be Reborn space on re for last two days.

Now I hope they stick a 650 in the frame and bring back the constellation.

View attachment 20768

There definitely seem to be more than one new 650 coming up:

Screenshot_20210903-203128_Chrome.jpg


On the right is the 650 Cruiser that's well known by now (probably called Shotgun)...on the left is a mystery...could be a Roadster version of the same, or might actually end up being the new Bullet/Classic 650...would make sense considering 500 is now discontinued.
 
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Milspec

सर्वदा शक्तिशाली; सर्वत्र विजय
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Dec 2, 2017
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There definitely seem to be more than one new 650 coming up:

View attachment 20778

On the right is the 650 Cruiser that's well known by now (probably called Shotgun)...on the left is a mystery...could be a Roadster version of the same, or might actually end up being the new Bullet/Classic 650...would make sense considering 500 is now discontinued.
Excited for the roadster!!!
 
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RISING SUN

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Dec 3, 2017
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4,802

Ford India's Chennai workers restart EcoSport production for exports​

Even as their morale is down with job loss staring at their faces, workers at the Chennai plant of Ford India Private Ltd have restarted production of EcoSport for exports, said an official.

The company has an export commitment of about 30,000 units which has to be completed by the end of this calendar year.

The workers union has also asked for a meeting with the top officials of Ford Motor Company involved in the decision of closing down three of the four plants in India.

"Production at the Chennai plant is going on as per schedule. The per day count of vehicles rolled out would differ as it depends on the production schedule," the workers union official told IANS on the condition of anonymity.

"The company has to export about 30,000 cars by the end of this year. So, the management has cajoled the workers to restart production while holding talks relating to the plant closure," another worker told IANS preferring anonymity.

A day before the Ganesh Chaturthi festival on September 9, Ford India announced that it will wind down vehicle assembly in Sanand by the fourth quarter of 2021, and vehicle and engine manufacturing in Chennai by the second quarter of 2022.

Ford India has four plants in the country -- vehicle and engine plants in Chennai and Sanand.

The company makes the EcoSport models at Chennai, while Figo and Aspire models are made at Sanand.

Ford India's Chennai plant is the sole manufacturer of the Ecosport model sold in the US; and the Aspire and Figo models sold in Mexico and South Africa.

Earlier Ford India used to make Endeavour models at Chennai but it stopped production recently.

"The workers involved in the making of Endeavour have been asked not to come to the plant for a week," a senior worker told IANS.

Ford India has decided to continue operating the engine plant in Sanand manufacturing the powertrains for Ranger models sold in Asia Pacific region (excluding China), Middle East and Africa.

Meanwhile the management and the worker union had two rounds of discussions on the plant closure.

The workers have insisted on job security but are also alive to the situation that the management can stop sourcing components, stop production and close the plant.

They are of the view that Ford India would like to send off its work force first and then sell the plant to an interested buyer.

"The wage agreement with the worker's union at the Chennai plant was recently concluded. The agreement is valid for one year. The wage talks in Sanand got stopped with the company announcing its decision to close down the plants," union officials said.

According to the union officials, there is a wage difference between the workers in the Chennai plant and those in Sanand.

"Further, the company has decided to continue running the engine plant at Sanand. So, the impact of plant closure is more in the case of Chennai than in Sanand."

Ford's 'quit India' decision will result in an uncertain future for about 5,300 employees - workers and staff, the officials said.

Ford India's Chennai plant has about 2,700 associates (permanent workers) and about 600 staff.

"In Sanand, the number of workers will be about 2,000," Sanand workers' union General Secretary Nayan Kateshiya told IANS

Ford India had said more than 500 employees at the Sanand engine plant, which produces engines for export, and about 100 employees supporting parts distribution and customer service, also will continue to support Ford's business in India.

According to Ford India, about 4,000 employees are expected to be affected by its decision.

The union officials are also studying the settlement packages offered by other companies and to avoid other pitfalls so that they can secure a good compensation package if they are not able to protect their jobs.

(Venkatachari Jagannathan can be contacted at [email protected])

--IANS
 
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