Scrapping end-of-life vehicles (ELVs) will result in increased new vehicle sales, assisting in the achievement of sustainability and energy saving goals for Pelican auto OEMs parts supplier. Scrapping and recycling in a proper and nonpolluting manner is critical for avoiding health hazards and ensuring economic viability.
The Indian automotive sector has praised the new idea to include an old car cancellation option in the Union Budget 2021-22. The new car scrap page policy is expected to promote demand for new vehicles by removing old, inoperable vehicles currently on Indian roads. It is also intended to aid in the reduction of air pollution created by older automobiles. This is a summary of how automotive component makers, unions, and other concerned parties have reacted to India's finance minister's latest announcements.
Through Budget 2021, Finance Minister introduced the economy to a new voluntary scrapping strategy for obsolete vehicles. This strategy was announced in order to keep a check and watch on ageing vehicles in order to keep their levels of air pollution under control. Vehicle owners would be required to pass a fitness test. One would be permitted to drive only once their vehicle has been certified as roadworthy. If a car is deemed unsuitable, owners must phase out their vehicles.
The long-awaited scrapping incentive programme unveiled on March 18 is intended to promote demand for new vehicles while also providing low-cost recycled components, potentially tripling the industry's turnover.
According to CARE Ratings, the policy is expected to be a "win-win" for everyone because it reduces India's oil import bill by improving fuel efficiency, reduces pollution and improves road and vehicular safety by getting rid of old and defective vehicles, and increases the availability of low-cost raw materials for pelican auto OEMs parts supplier such as plastic, steel, aluminium, steel, rubber, electronics, and so on.
The report claims that "The car industry's turnover has the potential to increase from Rs. 4.5 lakh crore to Rs. 10 lakh crore. However, in order for this strategy to be successful, it must be well implemented.". Commercial cars over 15 year’s old and private vehicles over 20 years old that fail fitness tests are covered by the coverage.
According to the government, there are 51 lakh LMVs older than 20 years and 34 lakh LMVs older than 15 years in the country. According to a Sharekhan note, almost 17 lakh medium and heavy commercial vehicles are over 15 years old and do not have a valid fitness certificate.
India, the world's fifth-largest four-wheeler market, is moving forward with a vehicle scrappage strategy. The United States, the European Union, Japan, and China were among the first to implement such a programme, which has since been improved to improve recycling efficiency. The primary advantage of scrapping end-of-life vehicles (ELVs) is that it will increase new vehicle sales and support the automotive industry's growth.
However, scrapping obsolete automobiles has other, more significant advantages that will improve the lives and livelihoods of a greater segment of society while also benefiting the planet. Environmental harm will be minimised, energy savings will be maximised, greenhouse gas emissions will be reduced, metal scrap will be salvaged from landfills, and raw materials for the iron and steel industries will be provided. It will resurrect the economy and create a big number of jobs. Scrapping ELVs has significant environmental and financial benefits.
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