Chennai, Tamil Nadu
EY India
released a report which states that the time is perfect for introducing a
scrappage policy in India. This move will be a catalyst to reducing emissions,
increasing vehicle sales and imported raw materials and expanding the
automotive ecosystem related to supply chain, scrapping centres and automation.
A scrappage
policy will also provide benefits related to a reduction in fuel import bill
and pollution, improved recycle or re-use of parts, generation of replacement
related demand and providing impetus to structuring scrappage in the automotive
ecosystem.
The report
further added that there was an opportunity to bring together new players and
the traditional automotive ecosystem to set up new business models that will
provide products and services in an organised manner to consumers.
The reliable
collection of scrap vehicles and preventing illegal dumping is very important
as India, at the moment, has an unorganised scrapping market. This can be
rectified with the advent of organised players and introducing standardised
processes and a centralised management system for complete vehicle scrapping
and scrap vehicles (similar to VAHAN for vehicle sales).
Source – The Hindu Business Line
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