Ashok Leyland Targets to Opening 3 to 4 Vehicle Scrappage Centres in a Year

Ashok Leyland, a well-known vehicle manufacturer from Chennai, has exciting plans for the next year. The company aims to open three or four new vehicle scrappage centres within the coming months. This expansion will use a franchise model. In contrast, Tata Motors, a competitor, already has five vehicle scrappage facilities under its Re.Wi.Re initiative. Tata Motors plans to open more centres soon and has already scraped over 4,000 vehicles in the last financial year. Their facilities can handle up to 72,000 vehicles each year.

Ashok Leyland’s First Scrappage Centre

Ashok Leyland launches its first scrappage facility in Tamil Nadu under a franchise model. This model will operate under the Re.AL initiative. Further, the company plans to expand to three to four more centres in a year.

Official Statement of Ashok Leyland, MD & CEO

Shenu Agarwal, Managing Director and CEO of Ashok Leyland, announced that the new centres will be part of their Re.AL initiative. He stated, “We will provide the necessary know-how and expertise on setting up and managing the scrapping centres, but the day-to-day operations will be handled by our franchisee partners, who will also bear the investment costs.”

With the franchise model, Ashok Leyland will provide the necessary support and expertise to help set up and operate these scrappage centres. However, the franchisees will be responsible for the daily operations and will also handle the investment costs.

Removal of Old Vehicles

The Indian government is pushing for the removal of old vehicles to help reduce pollution, improve road safety, and support the automotive industry. According to new rules, passenger vehicles older than 20 years and commercial vehicles over 15 years must either pass a fitness test or be scrapped. The policy also offers incentives like discounts on new vehicles to encourage people to follow these rules. This effort aims to promote the growth of the vehicle recycling industry, cut waste, and create new job opportunities.