Vehicle Scrappage Policy 2021: Tata Motors & Ashok Leyland inch higher
With the announcement of ‘Voluntary Vehicle Scrappage Policy’, S&P BSE Auto index witnessed a jump of 1.14 per cent.
On Monday, Finance Minister Nirmala Sitharaman gave a glimpse of ‘Voluntary Vehicle Scrappage’ Policy during the Union Budget 2021 presentation at the Lok Sabha. The Scrappage Policy is aimed towards discarding old vehicles so as to reduce vehicle pollution as well as decrease the volumes & expenses of oil imports.
A vehicle fitness test will be done wherein personal vehicles will have to undergo the tests after 20 years and commercial vehicles will undergo after 15 years.
Further details regarding the policy will be given out shortly by the respective ministry.
The Vehicle Scrappage Policy is a big breather for the auto companies. Stocks enjoying the announcement of the Scrappage Policy include Mahindra & Mahindra gaining by 2.01 per cent, Tata Motors rose by 1.33 per cent, Ashok Leyland increased by 1.40 per cent, Maruti Suzuki jumped by 1.20 per cent, Bajaj Auto gained by around 1 per cent, etc.