Bracing For The Rollout Of Scrappage Policy

As a financier and service provider in the pre-owned vehicles segment, Bike Bazaar is bracing for the rollout of scrappage policy. Sumesh Soman looks at the value proposition and impact on the components ecosystem as a crucial subset.

- Sumesh Soman

The verdict on the scrappage policy is a split one! Divided between an opportunity on one end of the spectrum and a threat of negatively impacting the pre-owned vehicle segment. Warranting a voluntary scrappage, restricting the life cycle of a vehicle to 15-years, the latter segment, has some stakeholders concerned about the business running into third and fourth owner hands being impacted. Here, financier and service provider of pre-owned vehicles, focussed on two-wheelers up to 500 cc, Bike Bazar, has sensed an opportunity. Averred Srinivas Kantheti, Cofounder at Bike Bazaar and Ex-President, Bajaj Auto - Two-wheelers, Domestic Sales, “I don't think it impacts us negatively at all. We do not look at vehicles beyond eight or nine years. We are focussed on the scrappage value which will be credited to the customer.” “We expect the customer to invest in a new vehicle and especially when there is a demand for electric two-wheelers. The scrappage policy can prove to be a useful push for our business,” he opined. Admitting to it being early days to gauge the impact of the rollout in-depth, Kantheti drew attention to the pilot commencing in select pockets ahead of a national rollout.

The marketplace dynamics