Renault and Kia India said that the new scrappage policy will help in weeding out polluting unfit vehicles and may also increase the demand for new vehicles.
Vehicle Scrappage Policy
French carmaker Renault and South Korean carmaker Kia India have welcomed the introduction of the vehicle scrappage policy, calling it a dice-turner for the vehicle industry. These companies have said that this will help in bringing in new investment in the sector as well as reduce the cost of raw materials.
Renault said that this policy will go a long way in bringing about a change in the old policy of junking any goods. The old policy sometimes proved unfavourable in terms of productivity.
Venkatram Mamillapalle, Country Chief Executive Officer (CEO) and Managing Director, Renault India Operations, said in a statement that the new policy was long awaited. This will support the auto industry. This will be a win-win situation for all. He said that this will help in bringing in more investment as well as reduce the cost of raw materials. Along with this, he also said that the scrappage policy will also increase jobs and people will get more opportunities.
Will help in removing polluting vehicles
Earlier in the day, Prime Minister Narendra Modi launched the National Scrappage Policy. Modi said that this will help in removing unqualified and polluting vehicles. Along with this, while addressing an investor summit to be organized to set up vehicle scrapping infrastructure under the Voluntary Vehicle-Fleet Modernization Program in Gujarat, he said that this policy will give a new identity to India’s mobility and auto sector.
There may be an increase in the production of new vehicles
Mamillapalle said that the scrap policy will inevitably encourage recycling and production of new vehicles. He further said that with the creation of policy supporting infrastructure such as automated testing stations and registered vehicle scrapping facilities, it will make India an auto hub in the future. Along with this, he also said that the scrappage policy will increase recycling and production of new vehicles, which will help in removing unfit vehicles that cause pollution.
Similarly, Kia India’s Vice President and Head (Sales and Marketing) Hardeep Singh Brar said that this policy can prove to be a dice-turner. This will ensure that only eco-friendly and safe vehicles will ply on the roads of the country. He said, “We welcome this move of the government. This will increase the demand for new cars.
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