Union Road Transport and Highway Minister Nitin Gadkari urged automakers to offer scrappage bonuses and discounts to consumers with scrappage certificates. The statement from the union minister came at the 65th SIAM Annual Convention 2025. Along with this, the minister shared various benefits associated with the scrapping of vehicles to further highlight the necessity of scrapping vehicles.
In his address to the automobile industry, Union Minister Nitin Gadkari claimed that 3 lakh vehicles were scrapped in August 2025. This included 1 lakh government vehicles with a monthly average of 16,830 vehicles. Presenting additional facts, the minister also said that the scrapping of vehicles can help boost the private sector with Rs 2700 crore of profit.
Union Minister Nitin Gadkari has highlighted the far-reaching benefits of India's vehicle scrappage policy, stating that it could generate about Rs 40,000 crore in revenue for both the Centre and states, while also significantly reducing production costs for automakers.
Additionally, he urged manufacturers to expand scrap yards and promote the use of scrapping certificates to incentivise consumers retiring old vehicles. The minister noted that the policy is expected to create nearly 70 lakh jobs, cut carbon dioxide emissions, and reduce dependence on extracting scarce metals like lead, platinum, and palladium, making it a win-win for the economy, industry, and environment.
Discussing the subject of biofuel, Union Minister Nitin Gadkari underlined India's push towards cleaner and more sustainable mobility, noting that the transport sector, which contributes nearly 40 percent of air pollution, must shift rapidly to greener alternatives. He highlighted that fossil fuel imports currently cost the nation Rs 22 lakh crore, while biofuel adoption has boosted exports and earned farmers Rs 45 crore in profits from corn, diversifying rural incomes.
Gadkari pointed out that India now ranks third globally in the automobile industry, with reduced lithium-ion battery prices driving EV adoption. He also stressed that the upcoming BS7 norms will align Indian auto standards with global benchmarks.