India faces a huge air pollution challenge, and hopes an auto scrappage scheme will help – tyre scrappage may follow
India Announces Vehicle Scrappage
India has announced an vehicle scrappage scheme as part of its 2021 Budget. This will see cars over 20 years having to be tested to meet emissions and other standards. This will be accompanied by a scrappage scheme.
The scrappage scheme has been largely welcomed by a depressed automotive sector in India, which sees the tests and scrappage as a driver to new car sales.
Vinay Raghunath, partner and automotive sector leader, EY India said: “The scrappage policy is a much-awaited development where, apart from boosting demand in the sector, it will simultaneously help reduce pollution and fossil fuel consumption while also enabling re-use of steel/aluminium. An extension of this policy to other aspects such as tyre scrappage may help boost demand in related sectors while also helping India become more self-reliant.”