Union Minister for Road Transport and Highways Nitin Gadkari on Tuesday inaugurated the new Maruti Suzuki Toyotsu Vehicle Scrapping facility in Noida. Built by Maruti Suzuki and Toyota Tsusho Group, the MSTI plant is the first government-approved scrapping and recycling facility for end-of-life vehicles (ELVs). Inaugurating the facility, Gadkari said that the National automobile scrappage policy will help in increasing automobile sales by 10 to 12 per cent. He also said that the policy will help to solve the global shortage of semiconductor chips.
Also Read: Scrappage Policy Will Help India Achieve Its Goal Of Net-Zero Emission By 2070: Nitin Gadkari
undefinedInaugurating ‘Scrapping Facilitation Centre' of Maruti Suzuki Toyotsu India Pvt. Ltd. (MSTI) https://t.co/lBF8MGY7yX
— Nitin Gadkari (@nitin_gadkari) November 23, 2021
Addressing the media, Union Minister Gadkari said, "This scrapping policy is going to boost automobile sales. We are expecting that there will be 10 to 12 per cent more sales because of scrapping policy, and that is a win-win situation for all the stakeholders."
The automotive scrappage policy was launched by Prime Minister Narendra Modi at the Investor Summit in Gujarat. Apart from improving new vehicle sales, the policy aims to remove polluting vehicles off the roads and push for safer and cleaner vehicles.
Union Minister Nitin Gadkari takes a tour of the Maruti Suzuki Toyotsu Scrapping Centre in Noida
The Indian auto industry was already facing a major slowdown in 2019, resulting in a heavy sales decline. The situation further worsened because of the coronavirus pandemic and the resultant lockdown, which was followed by the global shortage of semiconductors.
As per data released by SIAM, the passenger vehicle (PV) segment in India recorded a steep decline of 27 per cent in October 2021 selling 2,26,353 units compared to 3,10,694 vehicles sold in the same month year ago. Last month total new vehicle registrations stood at 13,64,526 units, a 5.33 per cent decline compared to October 2020. However, the dealers also saw the worst festive season in the last decade as retail sales fell 18 per cent during the 42-day festive period.
