ICRA, an independent and professional investment information and credit rating agency, has said in its latest press note that the population of medium and heavy commercial vehicles (M&HCVs), older than 15 years at around 1.1 million units as on 31 March 2024, presents a substantial scrappage opportunity, but the real scrappage could be lower considering the nature of such vehicles' use. The agency is clear, though, that even if a certain proportion of these vehicles are disposed of, it can increase demand for replacements and so increase auto sales.

ICRA estimates that in the upcoming fiscal years (FY2025 and FY2026), an additional 570,000 vehicles will surpass the 15-year age criteria. Furthermore, it presents a sizable replacement demand potential for the automobile sector, since over 900,000 government vehicles are expected to be mandatory demolished under the first phase. The agency further says that scrappage potential in other segments is limited considering the low use of two-wheelers, passenger cars and light commercial vehicles (LCVs) beyond 15 years. Only 44,803 private scrap applications and 41,432 government scrap applications (including defence/impound scrap applications) had been received by the registered vehicle scrapping facilities (RVSFs) as of 31 August 2024. Announced in March 2021 in India, the Scrappage Policy, also known as the Voluntary Vehicle Fleet Modernisation Programme, is being implemented in phases, with effect from 1 April 2023. The second phase of the strategy, which began on 1 June 2024, requires scrapping based on the vehicle's fitness rather than age, making it more optional than the first phase, which sought to force the scrapping of government vehicles older than 15 years.

India now has 117 RVSFs nationwide in terms of scrappage infrastructure, and 50–70 more are anticipated to be put into service over the course of the next four to five years. Although the majority of RVSFs are now located in metro and tier-1 areas, as public awareness of the Scrappage Policy grows and the government enforces it more strictly, additional scrappage facilities are anticipated to be established across the nation. A nationwide network of scrapping facilities operated by unorganised parties will supplement the RVSFs set up by the automakers in the process of recycling and scrapping end-of-life (ELV) vehicles.

Kinjal Shah, Senior Vice President & Co-Group Head – Corporate Ratings, ICRA, said, “The Vehicle Scrappage Policy has the potential to drive multiple benefits over the long term. While it will aid in reducing air pollution as older polluting vehicles get scrapped, it will also drive fleet modernisation programmes, in turn, supporting the auto industry volumes. ICRA also expects a considerable reduction in scrap imports and raw material costs for automotive original equipment manufacturers (OEMs) through recycling of metals under the Scrappage Policy framework. Implementation of the Vehicle Scrappage Policy, however, faces several challenges, which have slowed down its pace of implementation. The limited network of RVSFs at present, inadequate incentives, lack of awareness about this policy, particularly among private vehicle owners, and issues related to registration date criteria are a few factors that have hindered the rapid implementation of the policy. While several countries in North America and the Western European region have incentivised vehicle scrappages, mainly in the form of monetary compensations, India’s implementation of the Vehicular Scrappage Policy comprises voluntary incentives (such as discounts, road tax rebates, registration fee waivers etc.) and mandatory dis-incentives (such as mandatory fitness tests, imposition of green tax, hike in renewal fees for older vehicles etc.). As on 31 August 2024, the RVSFs had received only 44,803 private scrap applications and 41,432 government scrap applications (including defence/impound scrap applications).”

Ashok Leyland, a leading commercial vehicle manufacturer, has inaugurated its 22nd Light Commercial Vehicles (LCV) dealership in Uttar Pradesh. The new 3S facility located in Chunar, Mirzapur will further strengthen the company’s presence in North India.

The company’s LCV portfolio includes Saathi, Dost, Bada Dost, Partner and MiTR targeted for a wide range of customers and applications.

Viplav Shah, Head – LCV Business, Ashok Leyland, said, “Recognising immense potential of Uttar Pradesh as a key market for us, we are thrilled to strengthen our presence in the region. Our new dealership in Chunar (Mirzapur) would go a long way in reinforcing our presence in the state. The phenomenal success of our ‘Dost’, ‘Bada Dost,’ and the new ‘Saathi’ range underscores the robustness of our products - thanks to their best-in-class mileage, superior performance, and higher payloads. We take immense pride in our exceptional service retention levels, with nearly 70% of our customers returning to our dealer workshops even beyond the warranty period. This new dealership marks yet another milestone in our journey to provide the best possible experience to our valued customers.”

Ashok Leyland, one of the country’s leading commercial vehicle manufacturers, has signed a Memorandum of Understanding (MoU) with Nagaland Rural Bank for a strategic vehicle financing partnership. The partnership will see Ashok Leyland get access to customised financial solutions from Nagaland Rural Bank.

The MoU was signed by C Neelakantan, Head -Treasury and Direct Taxation, Ashok Leyland and Velayutham Sadhasivam, Chairman, Nagaland Rural Bank.

Balaji K M, CFO, Ashok Leyland, said, “At Ashok Leyland, we are dedicated to continuously enhancing customer experience and delivering greater value in our products and services. Nagaland Rural Bank is a regional rural bank with a strong presence in the state. With this partnership in place, our customers in the region will have access to comprehensive financing solutions with specially curated easy repayment plans”.

Sanjeev Kumar, President – MHCV, Ashok Leyland, said, “Ashok Leyland is looking forward to collaborating with Nagaland Rural Bank to offer our customers highly attractive financing solutions. This strategic partnership not only strengthens our market presence but also reinforces our commitment to innovation and customer success. With cutting-edge technology and industry-leading total cost of ownership, our products are designed to drive profitability and value for our customers. We remain steadfast in our commitment to deliver exceptional customer experience and build long lasting relationships.”

Velayutham Sadhasivam added, “Nagaland Rural Bank is delighted to collaborate with Ashok Leyland to provide seamless vehicle financing solutions. This partnership underscores our commitment to meeting the diverse financial needs of commercial vehicle customers across the state. We are confident that this alliance will help us expand our reach and offer customized financing options, fostering the growth of businesses in the commercial vehicle sector.”

Eicher Trucks & Buses, a business unit of VE Commercial Vehicles, has announced that it successfully hosted the second Woman Transporters Delegation at its Bhopal plant.

The event saw women leaders in the transport industry exchange ideas, share insights and explore new business opportunities. The discussion revolved around a wide range of topics such as digitisation, alternative fuels and intelligent mobility solutions that provide challenges and opportunities.

The women leaders were given an exclusive tour of Eicher’s Bhopal plant, an interactive session with VECV Executive Management and test drive experience.

Vinod Aggarwal, MD & CEO, VECV, said, “At Eicher Trucks and Buses, we firmly believe that inclusivity and diversity strengthen businesses and drives growth. Technology and digital solutions are transforming the industry, making businesses smarter and more efficient. While we are taking steps to improve diversity and inclusion internally through initiatives like an all-woman assembly line in Bhopal, we thank you for working with us to foster innovative approaches in the commercial vehicle industry."

Bhagwan K Bindiganavile, EVP, Strategic Planning, Brand & Communications, VECV, added, “The Indian CV industry is transforming rapidly, guided by Prime Minister Narendra Modi’s vision of Seven Cs for mobility solutions: Common, Connected, Convenient, Congestion-free, Charged, Clean and Cutting-edge. We appreciated the women leaders focus on balancing the new technologies making logistics more efficient with a people-first approach.”

SS Gill, Chief Commercial Officer, VECV; B Srinivas, COO, Eicher Trucks and Buses; Ramesh Rajagopalan, EVP, Customer Service, Retail Excellence and Network Development and Vimal Mulchandani, EVP- Manufacturing Operation, Eicher Trucks & Buses & Volvo Buses also engaged with the women transporters delegation.

Construction and off-road equipment major SANY has launched what it claims is India's first hybrid off-highway 100-tonne mining dump truck – the SKT130S – with localised manufacturing at its Pune factory.

The truck operates with a 925 kW engine, which generates 3200 Nm of torque, 100-tonne payload capacity and a 61 CuM heaped body capacity, designed for mining applications.

Deepak Garg, Vice-Chairman and MD, SANY India and South Asia, said, “The introduction of the SKT130S is a remarkable achievement in our journey towards driving innovation and self-reliance in India’s mining sector. As India’s first 100-tonne diesel-electric hybrid mining truck, the SKT130S demonstrates SANY India’s commitment to delivering high-performance, efficient and safe solutions to meet the evolving demands of the industry. Our focus on localisation not only supports India’s manufacturing vision but also ensures that we bring cutting-edge technology to enhance productivity in mining operations.”

The SKT130S is expected to achieve fuel savings of 20-25 percent compared to conventional mining trucks. A regenerative braking system enables the high-voltage battery to charge during downhill operation.

The truck includes an intelligent control module for operation management and a 10-inch central control screen for navigation and safety. The cabin meets FOPS/ROPS certification standards, aligning with global safety regulations.