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).”

Comments (0)

ADD COMMENT

Link Copied!

Mumbai-headquartered Tata Motors has reported its domestic commercial vehicle (CV) sales of 107,918 units for Q3 FY2026, which marks an 18 percent YoY growth, as compared to 91,260 units sold last year.

For December 2025, domestic CV sales stood at 40,057 units, up 24 percent YoY, over 32,369 units sold a year ago.

On the other hand, the company sold 2,451 units in the international market, up 63 percent YoY.

Girish Wagh, MD & CEO, Tata Motors, said, “The sales momentum ignited by GST 2.0 and the festive surge in Q2FY26 continued into Q3FY26, driving growth and lifting overall sentiment of the commercial vehicles industry. Tata Motors registered double-digit sales growth in Q3FY26, powered by a strong rebound in construction and mining activity post the extended monsoon, along with sustained demand from core sectors and auto logistics. Continued strength in SCVs and Pickups further amplified performance, resulting in wholesales of 115,577 units, with 21 percent YoY  growth over Q3FY25 and 22 percent sequential growth over Q2FY26. Going forward, we expect demand to strengthen in Q4FY26 across most commercial vehicle segments. Key drivers in 2026 will include the government’s sustained infrastructure push and expansion in end-use sectors, both of which are expected to fuel positive momentum for the industry. With an optimised portfolio ensuring superior product availability, a decisive pricing strategy, and deeper customer engagement through intensified market activations, Tata Motors is well-poised to unlock demand across segments, paving the way for continued success.”

Comments (0)

ADD COMMENT

Link Copied!

Chinese automotive major Dongfeng Motor Industry (DFMIEC) has launched the Dongfeng X9 fuel tractor in Vietnam.

The company showcased the X9 tractor alongside other models, including the X7 tractor, X3 tractor and various cargo trucks.

The event included technical briefings on the fuel performance and mechanical specifications of the X7 and X3 models. Currently, Dongfeng tractors rank among the top five CV players in the Vietnamese market. The introduction of the X9 is intended to expand the company's product matrix as the local government seeks to reduce logistics costs and transition towards high-quality transport infrastructure.

Wang Long, Chairman of DFMIEC, said, “Vietnam is one of the most dynamic and promising countries in the ASEAN region, with its industrialisation and urbanisation processes accelerating continuously, bringing broad growth space for the logistics industry. Driven by three major favourable factors – the expansion of infrastructure and logistics networks, the transfer of manufacturing industries and the rapid development of the digital economy, the market demand for logistics and transportation vehicles has maintained a steady growth. DFMIEC will move forward hand in hand with its partners to contribute to the development of Vietnam's transportation industry.”

The principal of the Vietnamese partner noted that the collaboration has reached a deeper level with the arrival of the X9. Dongfeng plans to continue its international strategy by investing in localised development and expanding its overseas footprint. The company intends to focus on resource investment to support the upgrading of the logistics sector in the ASEAN region.

Comments (0)

ADD COMMENT

Link Copied!

The State Express Transport Corporation (SETC) of Tamil Nadu has launched its intercity transport service with the induction of 20 Volvo 9600 15-metre seater coaches. The fleet was flagged off by the Chief Minister of Tamil Nadu, M K Stalin, at Island Grounds, Chennai.

The move is part of the state government's programme to upgrade public transport and provide long-distance travel options. The ceremony was attended by transport officials and government dignitaries, including the Minister for Transport, S S Sivasankar.

The Volvo 9600 coaches are manufactured at Volvo Buses India’s facilities and represent the current generation of the company’s bus range in the country.

The buses have a 51-seat layout designed for long-haul operations. Each unit is fitted with seats featuring calf support. It is engineered for ride quality, safety and operational reliability.

The coaches will operate on several major routes within Tamil Nadu and to neighbouring states, including:

• Chennai to: Coimbatore, Bengaluru, Tiruppur, Salem, Thanjavur, Trichy, Nagercoil and Tiruchendur.
• Inter-regional: Coimbatore–Bengaluru and Trichy–Tiruchendur.

Suresh Chettiar, Executive Vice-President – Bus Division, VE Commercial Vehicles, said, “We are proud to partner with SETC and the Government of Tamil Nadu in strengthening Tamil Nadu’s intercity transport ecosystem with the induction of Volvo 9600 coaches. These buses are engineered to deliver world-class comfort, safety, and operational reliability, supporting SETC’s vision of providing a superior travel experience to passengers while raising benchmarks for public transport in Tamil Nadu.”

Comments (0)

ADD COMMENT

Link Copied!

IVECO BUS has delivered its first GX 337 H2 LINIUM hydrogen city bus to the Lorient Agglomeration in France.

The delivery is part of a project that will eventually see 19 hydrogen buses added to the IziLo Mobilités network fleet, with 10 further units scheduled for delivery during 2026.

The GX 337 H2 LINIUM utilises a 100-kW fuel cell powered by four hydrogen tanks, integrated with a 69-kWh FPT Industrial battery pack. The bus has a claimed operational range of 450 km, can accommodate up to 110 passengers and hydrogen consumptions is claimed to be around 20 percent lower than others. Furthermore, it also is equipped with a heat pump system for thermal management and also comes with IVECO ON services to monitor performance and ownership costs.

Fabrice Loher, President, Lorient Agglomeration and Mayor of Lorient, said, “With the introduction of this first hydrogen bus, Lorient Agglomeration reaffirms its ambition to lead a bold and transformative energy transition. This milestone marks the emergence of a local sector that fosters innovation and job creation and strengthens our collective ability to offer sustainable mobility solutions tailored to the daily needs of our residents.”

Giorgio ZINO, Head of IVECO BUS Commercial Operations in Europe, said, “We are proud to see Lorient host the first European delivery of our GX 337 H2 LINIUM hydrogen city bus, a tangible demonstration of our commitment to working alongside local communities for decarbonised collective mobility. This technology delivers a high-performance solution, combining autonomy, comfort and energy efficiency and plays an active role in building a more sustainable future.”

IziLo Mobilités serves 25 municipalities with a population of 207,000. The network operates over 140 bus and boat lines. The introduction of hydrogen technology is intended to support the transition to carbon neutrality and reduce greenhouse gas emissions within the fleet.

Comments (0)

ADD COMMENT

Link Copied!