New Delhi: India’s commercial vehicle industry needs a strong and well-designed vehicle scrappage policy to accelerate replacement of old trucks, cut pollution and lower logistics costs, said Ashok Leyland MD and CEO Shenu Agarwal, as the sector sees a sharp demand surge post-GST 2.0.According to SIAM, commercial vehicle sales are set to reach a record 10.3 lakh units in 2025. Aggarwal said GST rationalization played an important role in boosting demand not only through price cuts but also through improvement in overall consumption and freight movement. He said the average age of India’s truck fleet has increased from seven-eight years to about 11 years, making operations more expensive and less efficient. While fleet owners believe that BS6 trucks are far more fuel-efficient than the older BS2 and BS3 vehicles, many are waiting for a clear policy move forward.
