icra estimates that the population of vehicles older than 15 years would be 11 million units by the financial year 2024 offering significant potential for scrappagenew delhi vehicle scrappage policy will provide a fillip to automotive industry volumes and spur demand for new vehicles rating agency icra said on friday the voluntary vehicle scrapping policy announced in the union budget for 202122 provides for fitness tests after 20 years for personal vehicles while commercial ones would require it after the completion of 15 years the government of india announced the muchawaited scrappage policy yesterday which along with several other supporting measures announced over the past few months is expected to progressively remove unfit vehicles from the road this would simultaneously spur replacement demand in the ecosystem thereby augmenting new vehicle demand as well icra said in a statement advt as announced by the finance minister during the budget speech in february 2021 the policy would be voluntary in nature the mandatory fitness test requirement would be applicable for heavy commercial vehicles from april 2023 and for other vehicles progressively from june 2024 shamsher dewan vice president and group head corporate sector ratings icra said the muchawaited scrappage policy is expected to provide a fillip to the auto industry volumes and has potential to realise multiple other benefits such as reducing pollution and oil imports reducing raw material costs through metal recycling fleet modernisation etc however setting up of necessary infrastructure for scrapping and further clarity on the valuation of the scrap value of the vehicle trade ability to scrap certificate etc remain key for successful implementation and realising the true potential of the policy he added icra estimates that the population of vehicles older than 15 years would be 11 million units by the financial year 2024 offering significant potential for scrappage however given the nature of the usage of such vehicles the actual scrappage potential could possibly be lower nevertheless even if a proportion of these vehicles get scrapped it can offer a fillip to volumes by spurring replacement demand and support the industry out of its trough icra estimates that even with 1520 per cent conversion it can provide a 2025 per cent upside to industry volumes in fy2024 the statement said pti published on mar 19 2021 at 0825 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app vehicle scrappage policy government of india nam automobile industry scrappage budget homenewsindustryscrappage policy to give fillip to automobile industry volumesspur demand