Major car manufacturers are in a hurry
To implement a “ practice “ detailed in my yesterday’s Blog ?
[ Vehicle
Scrapping : Time to copy M&M ? ]
It seems so from the following news report which
appeared in to-day’s MINT :
Tata
Motors plans vehicle scrapyards in four cities
Extract :
Ø
Tata Motors Ltd will collaborate with its dealers to
build vehicle scrapyards in Howrah, Karnal, Hyderabad and Greater Mumbai… as India’s
largest truck maker sets sights on an emerging business opportunity.
Ø Tata Motors will start with these four units but may expand the scrapping
business later ..
creating a new revenue stream for its dealers.
Ø “In the coming months, the company may also collaborate with public sector
enterprises, but, initially, they may choose to go on their own.
Ø The government has proposed a road tax rebate of 15-25% and a full
registration fee waiver for the new purchase if old vehicles are scrapped. It
has also urged vehicle makers to offer a 5% discount against a certificate of
scrapping. Scrap yards will offer a price to the old vehicles being scrapped,
which will be 4-6% of the price of a new vehicle.
Ø Vehicle scrapping is expected to become a thriving business in the
coming years. Hence, most automakers are interested, and the number of
old vehicles, especially commercial vehicles, is staggering. So the potential is
huge.
Ø Most automakers are expected to tie up with some other company to get
the technology involved
in the scrapping of vehicles.
Ø Top
automakers are already considering similar scrapyards.
Ø Last year, Maruti Suzuki India Ltd announced a tie-up with Toyota Motor
Corp.’s subsidiary, Tshusho India, for setting up vehicle dismantling units
across the country. Mahindra Intertrade Ltd has partnered with MSTC Ltd, a
public sector unit under
the steel ministry, for opening such scrapyards.
=================================================
In my yesterday’ s blog, I envisaged following practice which the
dealers would adopt to entice the owners of OLD cars for a “ trade-in “ with a new car :
[ Vehicle Scrapping : Time to copy M&M ? ]
Here
is how that “ deal “ will work :
While handing over the old car,( say ) the customer wants to buy a M&M
Scorpio ( priced @ Rs 10 lakhs / 5 % = Rs 50,000 )
Dealer
says :
Ø Your old car Scrap Value is Rs 100,000
Ø If you do NOT want to buy any NEW car from me, I give you only Rs
50,000,
as scrap value
Ø But,
if you buy a Scorpio, I give you :
# Rs
50,000 as Scrap Value , AND
# Rs 50,000 as
discount
=================================================
With regards,
Hemen Parekh
/
hcp@RecruitGuru.com / 12
April 2021
=================================================
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