Vehicle scrappage policy can provide positive push to new automotive circular economy: EY
In its latest report — Scrappage policy for the automotive sector is here! Mobility Roadmap in Circular Economy — EY India said original equipment manufacturers (OEMs) are responding to the new dimensions of mobility such as connected, autonomous and shared, new forms of ownership and an increased environmental focus across stakeholders.
There is an opportunity to set up new business models where new players and the traditional automotive ecosystem come together in an organised manner to provide products and services to consumers, EY India said in a statement.
Commenting on the new possibilities EY India Partner, Automotive sector, Som Kapoor said, “We are at a point where we could see the emergence of a new business model that extends the current auto ecosystem, where both new players and traditional players can be involved to deliver solutions in an organised manner”.
“The scrappage policy will provide novel opportunities for both new and existing players to build a robust go-to-market offering and provide consumers solutions to ease the end of life of vehicle resale/ purchase processes,” Kapoor added.
As per the Voluntary Vehicle-Fleet Modernisation Programme or Vehicle Scrapping Policy, a rebate of about 5 per cent will be offered to new car purchases in lieu of the scrapping of the old one. The government has advised manufacturers to provide a discount of 5 per cent on the purchase of new vehicles against the scrapping certificate.
