Cash-for-clunkers in India? Nah!

Do you know about the ‘Cash-for-Clunkers’ scheme in USA? It was a scheme announced during when recession was at its peak and auto sales were plummeting. This scheme, was designed to boost U.S. auto sales and help the environment by providing an economic incentive for consumers to replace old, dirty, low-mileage vehicles with new ones that are safer, use less fuel, and spew less pollution and fewer greenhouse gases into the atmosphere. The Govt, on its part, sent vouchers worth up to $4,500 to automobile dealers on behalf of consumers who trade in their older, low-mileage vehicles for new, fuel-efficient models.

Well, the automobile sector has been demanding for something like this to be started here for the past two years. Late October this year, Society of Indian Automobile Manufacturers (SIAM) made a presentation on the kind of scheme it would like to see to the Parliamentary Standing Committee. SIAM had proposed that customers should get around Rs.1 lakh tax concessions is they sell their cars older than 15 years and it stated that doing this, the auto industry will generate over Rs.31,000 crore in revenue for the Govt, if implemented in only 8 large cities of India.

Well, those in the industry say that there are very low chances of this scheme ever seeing the light of the day, with most calling it a pipe cream. Well, with elections round the corner, it is unlikely that any such measures would be taken by the Govt and this means SIAM’s representation will be pushed into the bin and SIAM might have to present another one, to the new Govt.