Leyland: Need well-designed scrappage policy

NEW DELHI: India’s commercial vehicle industry needs a stronger and well-designed vehicle scrappage policy to accelerate the replacement of old trucks, cut pollution and lower logistics costs, Ashok Leyland MD and CEO Shenu Agarwal said, as the sector sees a sharp demand rebound after GST 2.0.According to Siam, commercial vehicle sales touched a record 10.3 lakh units in 2025. Agarwal said GST rationalisation played a key role in lifting demand, not merely through price cuts but by improving overall consumption and freight movement. He said average age of India’s truck fleet rose to nearly 11 years from seven-eight years, making operations more expensive and less efficient. While fleet owners recognise that BS6 trucks are far more fuel-efficient than older BS2 and BS3 vehicles, many are waiting for a clearer policy push.