17 Feb 2017
INDIA: Purge of Outdated Commercial Vehicles Set to Boost Domestic Auto Industry
Owners of commercial vehicles that are more than 15 years old are to be incentivised to replace them with new ones. The incentives on offer include a 50% reduction in road tax and excise duty as well as a 15% government subsidy towards the cost of any new vehicle. Owners will also be guaranteed a fair price for the scrap under the government scheme.
Billed as the Voluntary Vehicle Fleet Modernisation Programme (V-VMP), the scheme extends to all commercial vehicles, including coaches and buses, and is intended to boost India’s domestic automobile industry.
It is believed that any upturn in the local automotive sector could provide an opportunity for Hong Kong companies to supply parts and accessories. As something of a disincentive, though, all such imports are liable to customs tariffs (including countervailing duties) of up to 29.44%.