“GST 2.0 has already provided such a trigger by boosting consumption-driven demand for freight transportation. Another example could be a well-designed incentive program for demolition,” Agarwal told reporters here.
While he emphasized that scrapping should not be mandatory, he noted that government-led incentives linked to vehicle tonnage could promote faster replacement.”Smaller trucks could attract smaller incentives while higher tonnage vehicles could get more support. This would benefit both customers and the industry,” Agarwal said.
He noted that the government is promoting scrapping by setting up vehicle scrapping facilities.
“So the government is creating that ecosystem, but initially it would require some kind of push to get people into the habit of scrapping the trucks,” Agarwal opined. In addition to environmental benefits, newer trucks are expected to reduce logistics costs by transporting larger loads at higher speeds and with fewer emissions, he added.
“The average age of the Indian truck fleet is now ten years, compared to the historical seven to eight years,” Agarwal said.
On investment plans, he noted that the Hinduja flagship has increased its annual capex to Rs 1,000 crore from Rs 300-400 crore earlier.
Agarwal noted that the company plans to set up a new factory in Saudi Arabia with an initial production capacity of about 10,000 units.
“We are working on a total blueprint of the Saudi plan. We have received all necessary approvals from the local government. We are almost at the point of identifying the location,” he added.
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