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SIAM Seeks To Scrap 15 Year Old Cars To Boost Sale
Siam has argued that new automobile technologies and improvements in engines have meant new cars are far better than older cars when it comes to emissions. All new cars built in India now have to confirm to Bharat IV emission norms while older ones emit more polluting gases. Hence it has asked the Indian government to scrap as private vehicles that are more than 15 years old.
SIAM believes this move will help retain the growth in car sales in India this year. The recent six months have seen a drastic fall in car sales due to fears of another recession and increased fuel prices and bank interest rates. The Indian car industry which was once the fastest growing market in the world is slowing down due to these above mentioned fears.
The scrappage scheme launch in Europe and America also helped carmakers boost their sales at a time when the global economic crisis was at its worst. Car sales had dropped dramatically and carmakers were struggling to stay afloat. Several European countries including the UK, Germany, France, Italy and Spain offered 2,000 Euros to buyers of new cars who scrapped their old ones.
SIAM is seeking similar cash discount5s for car buyers in India. Instead of a cash hand out, SIAM has said the government should offer lower excise duties, sales tax along with some cash discounts. SIAM has said the scrappage scheme must cover private vehicles, commercial vehicles and two wheelers.
The scrappage scheme might appear eco friendly, but there are several arguments that we can list against it. The scheme does not consider the emissions generated in the process of building a new car. The scheme will only help add more cars to our already clogged roads. There are some cars among us which are older than 15 years but yet offer great performance.
The scrappage scheme will only help carmakers improve their sales when the customers are postponing purchases. Any incentive to push car sales will only deplete the government"s treasury with no possibility of returns.
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