All private cars in India made prior to 1996 should be scrapped to drive sales of new vehicles, the Society of Indian Automobile Manufacturers (Siam) has said.

"We want the government to come out with a one-time concrete policy for scrappage of old vehicles," Siam president S Sandilya told the Times of India.

"This would not only help in generating demand for new vehicles but go a long way in controlling old and polluting vehicles and resultant emissions."

He also suggested that the rate of road tax and rate of premium on motor vehicle insurance could be increased progressively with the age of the vehicle.

It comes as Siam reports that passenger car sales in India between April and September were 1.36 per cent lower than the same period in 2010.

Sandilya said the cut-off for passenger cars could be set at 15 years, while ten years would be appropriate for commercial vehicles.

Source:

Scrap cars made before 1996, Siam tells govt (12/10/11)

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