Driving Change: Incentives Urged for Truck Scrappage in Budget

Ashok Leyland's MD and CEO, Shenu Agarwal, suggests government incentives for scrapping old trucks to boost demand for new models and combat pollution. A proposed scheme could align incentives with vehicle tonnage, supporting both customers and the industry. Agarwal emphasizes non-mandatory participation and highlights potential economic and environmental benefits.

In an effort to rejuvenate the trucking industry, Ashok Leyland's MD and CEO, Shenu Agarwal, has proposed that the government introduce incentives for scrapping old trucks in the upcoming Budget. This initiative aims to stimulate fresh demand for new, more efficient vehicles while addressing air pollution concerns.

On Thursday, the company relaunched its Taurus and Hippo heavy-duty trucks, emphasizing that new models offer better productivity. Agarwal mentioned that while GST 2.0 has increased freight demand, a well-designed scrappage incentive scheme could further boost the industry.

Agarwal underscored that scrappage incentives should be voluntary and linked to vehicle tonnage, with larger vehicles receiving greater support. He pointed out the dual benefits of less pollution and decreased logistics costs due to improved truck technology, which could significantly impact India's economy.

(With inputs from agencies.)