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).”

JBM Electric Vehicles, the electric vehicle business unit of JBM Group, showcased what it claims is India’s first Mobile Medical Unit (MMU) to key dignitaries J P Nadda, Minister of Health & Family Welfare, Manohar Lal, Minister of Housing and Urban Affairs and Dr S K Sarin, Director, Institute of Liver & Biliary Sciences. Also present at the occasion were S K Arya, Chairman, JBM Group and Nishant Arya, Vice Chairman, JBM Group.

The MMU is focussed on providing last-mile healthcare and is equipped with medicines, staff, advanced medical equipment, teleconsultation capabilities and other logistics. It is equipped to provide a range of services and medical equipment such as - defibrillator, fibroscan, bio-chemistry analyser, centrifuge, blood transport box and ECG machine among others.

JBM shared that the MMU is conceptualied, designed and developed entirely in India, aligning with the Prime Minister’s flagship health initiative – PM Jan Aarogya Yojna (PM-JAY). It is aimed at improving healthcare access in rural and semi-rural areas. The vehicle will act as a ‘Hospital on Wheels’ directly reaching to the people’s doors.

Introduced by the Ministry of Road Transport and Highways (MoRTH), Government of India, in 2017 on a pilot basis by the Mumbai Traffic police in October 2016, the e-challan system has since been put into practive all over the country. Aimed at digitising the process of traffic violation enforcement by eliminating manual loopholes, the system is proving to be annoying for transporters however.

It is not the technology, but the ones who deploy the system, claims transporters. Stating that the e-challan system has over time become a source of significant distress for transporters even though its introduction was appreciated by the industry as it digitised the process of traffic violation enforcement and eliminated many manual loopholes, Bal Malkit Singh, Chairman - Core Committe and Former President, All India Motor Transport Congress (AIMTC), averred, "The system has over time become a source of significant distress for transporters and other road users. It has become a new ‘Frankenstein’ and death knell for the road transport sector.” 

Stating that a strong resentment is brewing and the transport fraternity across the country is agitating, Singh said, “The intention behind e-challans is to improve transparency and reduce manual intervention, but several issues have risen to complicate the situation for transporters.” “The primary issue stems from the large volume of incorrect or excessive e-challans issued to them. Many trucks plying long distances are receiving multiple e-challans for the same alleged offense or due to erroneous readings from speed detection or overloading devices,” he added. 

Giving an example of trucks travelling through multiple states often receiving fines for supposed infractions such as over-speeding or minor overloading even though they are within legal limits, Singh explained, “Such errors accumulate and led to a financial strain for transporters. This is exacerbated as transporters operate nationwide – covering diverse terrains and jurisdictions – that would mean that they may be penalised in various states.” “These fines often lack clarity or the chance for immediate redressal, leading to confusion and increased operational costs,” he elaborated.

Informing that enforcement officials have found a way around technology to generate motivated challans without any verifiable proof of offence, which is leading to acute harassment of the transport fraternity, Singh articulated, “There is neither authentication of any violation through static photo nor there is any transparency leading to acute harassment of the transport fraternity. Static photo of a parked vehicle is clicked and challans are issued for random offences. The vehicle owner may be from a geographically distant state and cannot contest the challan in court. Lack of communication regarding issuance of e-challan to the vehicle owner/operators who is sitting in one part of the country and must travel across the length and breadth of it to get it disposed/rectified.”

With instance where the vehicle owner comes to know of the challans issued only after he tries to dispose of his vehicle, goes to renew its fitness and to renew the permit (in the case of commercial vehicles), the issues with e-challans is pan-India in nature than be limited to a certain geographically or cultural area it looks like. 

Transport associations like the All India Motor Transport Congress (AIMTC) have voiced concerns and are actively engaging with state and central authorities to address the growing problem. They have raised issues related to inaccurate e-challans due to technical errors or faulty detection equipment, lack of a unified system across states leading to inconsistency in how fines are issued and difficulty in contesting these fines as there is no streamlined process for redressal or appealing incorrect challans.

They are demanding a centralised and transparent grievance redressal system, standardisation of e-challan policies, equipment calibration across states and leniency or waiver of penalties that are clearly issued due to system malfunctions, according to Singh. 

Of the opinion that traffic enforcement is a state subject, Singh expressed that the intensity and frequency of issues differ state-to-state therefore and in some states use of faulty equipment or overly strict enforcement practices that has led to a higher number of incorrect challans. Singh drew attention to issues like non-integration with national vehicle databases (such as Vahan 4) in some states. “The system in Telangana for example,” Singh articulated, “has been of specific concern for transporters because it is not fully integrated with the national system, leading to problems like wrongful issuance of challans for vehicles from other states.” 

"The potential solutions to addressing the issue of e-challan," Singh commented, “Is to ensure scientifically verifiable evidence. A centralised grievance redressal system with a nodal officer should be put in place. The exact recording of the offence with exact measurement in case of over-height or overload or similar such case should be presented rather than a picture to avoid any doubt about motivated action. Equipment and procedures should be standardised. Vehicle databases should be integrated. Enforcement officials should ne trained to be humane. The accountability of the enforcement officials should be ascertained whenever the issue of motivated challans is there." 

Image for representative purpose only. 

Agri-solutions provider Coromandel International Limited and Mahindra & Mahindra Limited’s Farm Equipment Sector (FES) business vertical, Krish-e, have signed a memorandum of association (MoU) to extend Coromandel’s Gromor Drive drone spraying services to Indian farmers.

Pilots with RPTO training assist Gromor Drive in its operations, which are now carried out in seven important states, including Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Maharashtra, Madhya Pradesh and Uttar Pradesh. With the help of its subsidiary, Dhaksha Unmanned Systems, which guarantees dependable drone supply, pilot training and service support, Coromandel's drone services are positioned uniquely in the industry. Coromandel has a clear competitive advantage in this developing market thanks to this backward integration. Through the Krish-e Kheti Ke Liye App and other technology-driven farm solutions provided by Mahindra's FES, the cooperation further improves accessibility to these services with the goal of sustainably maximising farmers' revenue and enhancing the overall agricultural value chain.

Amir Alvi, Chief Operating Officer – Fertiliser Business, Coromandel, said: “Coromandel’s Gromor Drive offers significant advancements in efficiency, scalability and convenience for agricultural practices to farmers. This (non-binding) MoU signing between Coromandel’s Gromor Drive and Mahindra Krish-e represents a pivotal moment in our journey towards transforming the agricultural landscape of India by making drone spraying accessible to farmers. We aim to reduce their input costs, increase productivity, and improve farm profitability through this collaboration. Coromandel’s Gromor Drive, backed by the company’s subsidiary Dhaksha Unmanned Systems, brings in the added advantage of in-house developed cutting-edge agricultural drones, in addition to its fleet of certified drone pilots. We are confident that this collaboration will unlock new opportunities for innovation, create value for our stakeholders, and most importantly, make a positive and lasting impact on the lives of farmers.”

Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra Ltd, said, “With Krish-e’s well-established presence across the country and Coromandel’s experienced Gromor Drive fleet, we are pleased to take the benefits of drones to many more Indian farmers. A significant step towards enhancing productivity and lowering a farmer’s exposure to powerful chemicals, drone technology can enable selective spraying of fertiliser and chemicals on crops while also ensuring improved yield. The partnership will ensure accessibility of drone spraying for Krish-e customers through the Krish-e Kheti ke Liye App, on a pay-per-acre basis.”

Ashok Leyland, the Indian flagship of the Hinduja Group and the country’s leading commercial vehicle manufacturer, has officially announced that it has decided to increase the prices for its entire range of commercial vehicles by up to three percent. The price hike will come into effect from January 2025.

All goods in the range will be impacted, albeit the degree of the price rise will differ based on the model and version. Higher commodity costs and inflation have made this price hike necessary. This action will lessen the impact of input costs to some extent, says the company.

The statement further reiterated that the company remains committed to innovation, excellence, operational efficiency and sustainability in the space of commercial vehicles.