The Government of India has decided to cap life of commercial vehicles to 20 years from the year 2020. This will include all commercial vehicles such as taxis, three wheelers, trucks and buses that have been registered prior to 2000.
These vehicles will not be allowed to ply on roads from the 1st April 2020 and hence forth all commercial vehicles completing 20 years on the road will be automatically de-registered.
With this policy coming into effect, the Government expects at least 7 lakh vehicles to be off the road from 2020. However, the policy has exempted private vehicles, such as cars and two wheelers, above 20 years old from being scrapped. This is provided they comply with emission norms.
The study conducted by AT Kearney reveals that there are 11.2 lakh MHCVs on the road that are over 15 years of age, contributing 34% of pollution.
Motor Vehicle Act defines a light motor vehicle as a transport vehicle that has unladed weight not above 7,500 kgs. This covers the entire range of passenger and SUVs besides MUVs currently available. The Toyota Innova for instance weighs 1,870 kgs and the Mercedes Benz GL class weighs 2,535 kgs. MHCVs accounted for 2.5% of India’s total fleet contributing 60% to air pollution.
To benefit these owners of vehicles above 20 years of age, the government is offering incentives in the form of scrap value, direct transfers at 4-5% of the cost of basic model besides cash discounts.