Categories: Business

Emphasis of companies on incentive based junk policy to revive commercial vehicle sector

Commercial Vehicle Segment

new Delhi. Tata Motors and Ashok Leyland said that to revive the commercial vehicle sector, there is a need to bring in a better formulated and financial incentive policy to break old vehicles. Vehicle junk policy has been in operation for quite some time. The purpose of this policy is to remove the old vehicles from operating over a period of time. Sales of commercial vehicles have been declining for the last one year. The first India phase-six emission norms led to a decline in sales and then a fall due to the corona virus epidemic.

The industry hopes that if old vehicles are removed, this will not only help reduce pollution, but will also increase demand for new vehicles. Tata Motors, the top company in the commercial vehicle segment, has said that the upcoming legislation should clearly define incentives and regulatory rules to remove older vehicles. Ashok Leyland Managing Director and Chief Executive Officer Vipin Sondhi said that there is a need to increase the demand for commercial vehicles. He said that before the Corona virus epidemic, the condition of the commercial vehicle segment was very bad. Now this area has completely stopped. Sondhi said that everyone knows that commercial vehicles are the lifeline of the economy of any country. In such a situation it is necessary to increase the demand for commercial vehicles. He said that an incentive junk policy should be brought for this sector. This incentive can be in the form of exemption in Goods and Services Tax (GST), toll or registration fee. This will certainly help to increase demand. Naveen Soni, senior vice-president (sales and marketing), Toyota Kirloskar Motor, said the incentive junk policy would help remove old and polluting vehicles. This is also the need of the hour today.

A Tata Motors spokesperson told PTI that a better defined and effective junk policy is needed to increase demand for clean BS-6 vehicles. This becomes more necessary especially in view of the declining demand from the end user areas. The spokesman said that the sale of new vehicles would depend on the demand to replace the old ones. He said that the policy should clearly define the age limit for vehicles (ELVs) and incentives.

This post was published on May 4, 2020 2:26 am

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