Surrendering new cars in India will cut down 8-12% cost of new cars?
India is looking forward to get 11-year-old (28 million) polluting cars off its roads.
This plan is know as the ‘voluntary vehicle fleet modernization plan (V-VMP)’ provides an incentive worth 8–12 per cent of the cost of a new car only after surrendering the old one.
The Ministry of Road Transport and Highways has submitted the vehicle policy to the Finance Ministry to seek approval.
Subject to approval from the Ministry of Finance, it has been proposed that vehicles bought under this scheme may get up to 50 per cent excise duty relief based on old vehicle and replacement vehicle category.