Latest news with #VehicleScrappagePolicy
Time of India
3 days ago
- Automotive
- Time of India
Commercial Vehicle sales expected to rebound by up to 5% in FY26: CareEdge Ratings
After two years of subdued performance, India's commercial vehicle (CV) industry is poised for a modest recovery in FY26, with overall wholesale volumes expected to grow by 2–5 per cent, according to CareEdge Ratings . The turnaround is likely to be supported by increased infrastructure activity, favourable monsoon forecasts, improved financing conditions, and fleet replacement demand. The Light Commercial Vehicle (LCV) segment is projected to grow by 2–4 per cent, while Medium and Heavy Commercial Vehicles (M&HCV s) are expected to see a stronger rebound of 4–6 per cent. 'The commercial vehicle industry is set for moderate growth, led by rising infrastructure spends, improved rural sentiment, and the easing of interest rates,' said Arti Roy, Associate Director, CareEdge Ratings. She added that factors such as road tax concessions under the scrappage policy and transition to electric buses will further boost demand, especially in the bus segment. The Reserve Bank of India's 100 basis point cumulative repo rate cut between February and June 2025 is expected to ease financing costs in FY26, boosting affordability for buyers and encouraging demand. (One hundred basis points are equivalent to 1 per cent). States offering road tax concessions of 15–25 per cent under the Vehicle Scrappage Policy are also likely to support new vehicle sales. M&HCV and LCV performance In FY25, M&HCV truck volumes declined by 2.7 per cent, weighed down by election-related disruptions, delayed infrastructure projects, and high interest rates. In contrast, M&HCV bus volumes rose 21.6 per cent, driven by increased demand for public transport and government fleet renewals. Overall M&HCV volumes grew by a muted 1.2 per cent. The LCV segment also faced headwinds, including weak rural demand, competition from electric cargo three-wheelers, and cautious financing for small fleet operators. While LCV passenger carriers grew 8 per cent, goods carriers declined by 1 per cent. The sector will also navigate key regulatory changes in FY26–FY27, including the mandatory introduction of air-conditioned truck cabins from October 2025 and the rollout of TREM-V emission norms for non-road vehicles from April 2026. These changes may increase vehicle costs, potentially triggering a pre-buying rush in FY26. Overall, CareEdge Ratings expects these combined factors to drive a gradual but sustained recovery in India's commercial vehicle industry in the year ahead.
Time of India
01-05-2025
- Automotive
- Time of India
Over 13k vehicles in Meghalaya to be taken off roads: Minister
Shillong: The Meghalaya cabinet on Thursday approved the Vehicle Scrappage Policy (VSP), under which approximately 13,000 vehicles will be taken off the roads in the first phase, in a bid to reduce vehicular pollution. Cabinet minister and ruling Meghalaya Democratic Alliance spokesperson Paul Lyngdoh said, "We will address the matter by first taking off govt vehicles which are 15 years and older. Around 5,000 govt vehicles come under the scrappage policy and will be removed from the roads". Regarding private vehicles, he added, "We will first implement the policy by limiting it to vehicles that are 35 years and older, and there are about 8,000 such vehicles". He further said, "Altogether, 5,000 govt vehicles and 8,000 private vehicles make up the 13,000 vehicles that will be off the roads as per this policy". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Scarlett Johansson, 40, Shows Off Her Real Size In A New Vacation Photos 33 Bridges Undo Emphasising on the benefits of the policy, Lyngdoh said, "The major benefit is to allow the govt to reduce pollution levels, lower fuel imports, and promote recycling of raw materials". He also said Shillong currently has approximately 2,76,262 registered vehicles. The minister further said this step was in line with similar initiatives being undertaken across the country.
