Scrappage policy: SIAM urges govt to let dealer workshops function as inspection, certification centres

Automobile industry body Society of Indian Automobile Manufacturers (SIAM) on Tuesday said it has urged the government to let dealer workshops function as inspection and certification centres under the vehicle scrappage policy. Speaking at the 3rd Auto Retail Conclave organised by Federation of Automobile Dealers Associations (FADA), SIAM President Kenichi Ayukawa said if the government starts new inspection centres, these may not be commercially viable and may take a long time to develop across India.

“We are requesting the government that in the scrappage scheme, the dealer workshops should be allowed as Inspection and certification centres. This is because the dealer organisation already has equipment, investment and expertise in testing the automobiles,” he said.

Ayukawa, who is also the managing director and CEO of Maruti Suzuki India, further said, “Also, dealers are located close to the customers.”

“If the government accepts our request of using existing automobile dealer facilities, it will be a big statement of trust by the government on automobile dealers,” he said.

Expressing confidence on automobile dealers to “realise this big responsibility”, Ayukawa said,”I also hope they will live up to this trust and carry out all inspection and certification with objectivity.”

Ayukawa also said the auto industry is requesting the government for starting the fitness testing much earlier in the life of a car.

“The current 15-year or 20-year period appears too long,” he added.

The voluntary vehicle scrapping policy provides for fitness tests after 20 years for personal vehicles while commercial vehicles would require it after the completion of 15 years.

He also said SIAM has approached the government for support to dealer partners, including asking the Reserve Bank of India to extend the moratorium for loans for dealers.