OSD Scrap Vehicle Incentive Proposal Continuous!

Automotive Industry Association (OSD) Chairman of the Board Haydar Yenigün, ended by the end of the year and publicly known as the incentive for scrap “Elderly Vehicle Exchange Program bulundu made statements. Haydar Yenigün emphasized that more than 2018 thousand scrap vehicles have been deleted from traffic since June 400, when the program was put into operation. We consider this as a very important application considering the revival of the domestic market, contribution to the economy, traffic safety and above all environmental sensitivity. In this context, the content of the scrap incentive program by removing the condition of change with the same vehicle, being treated as a continuous program as in many other countries, or continuing as a short-term solution after 2019, our automotive industry, which makes 19 percent of Turkey's exports, contributes significantly to the economy. It is important on behalf of ”. Haydar Yenigün, the program will increase the effectiveness of the 4 important proposals shared.

The “Elderly Vehicle Exchange Program bilinen, known to the public as incentive for scrap, ended as of the end of 2019. The Automotive Industry Association (OSD) Chairman Haydar Yenigün, who shares his views on the program that mobilizes the domestic market to a great extent, said that they had brought 4 more critical suggestions about the program while sharing important statistics. Stating that the tax regulations introduced in November together with the scrap incentive program introduced in June 2018 have a slowing effect on the contraction of the market, Haydar Yenigün said, “The said program; revival of the domestic market, economy, traffic safety, and above all, environmental considerations are considered as a very important application. In this context, the content of the scrap incentive program by removing the condition of change with the same vehicle, being treated as a continuous program as in many other countries, or continuing as a short-term solution after 2019, our automotive industry, which makes 19 percent of Turkey's exports, contributes significantly to the economy. It is important on behalf of ”.

More than 400 thousand scrap vehicles deleted from traffic

Stating that the program has made significant contributions to sales in the domestic market since the day it was commissioned, OSD Chairman Haydar Yenigün said, “As of June 2018, the number of vehicles whose registration has been deleted from traffic has increased significantly. While 2018 thousand 22 vehicles were deleted from traffic in January-May period of 674, it was observed that 180 thousand 306 vehicles were registered from traffic in June-December period. In the first ten months of 2019, the number of unregistered vehicles reached 224. If it is accepted that a significant portion of the unregistered vehicles are replaced with new vehicles, it is concluded that the scrap incentive application curbs the contraction in the market. In other words, if there were no scrap program and tax cuts, the contraction in the market would be higher. ”

Saying that they have prepared 4 important suggestions to increase the effectiveness of the existing artır Elderly Vehicle Exchange Program Hayd, OSD Chairman Haydar Yenigün listed these suggestions as follows:

• In the content of the program, it is necessary to remove the requirement to exchange vehicles with the same category, in particular by scraping a vehicle in the car and light commercial vehicle classes, and to enable the purchase of a new car or light commercial vehicle class. In other words, the requirement to buy vehicles in the same category should be removed for these categories.
• The excise tax amounts to be abandoned should be updated by taking into consideration the additional costs and economic conditions arising from the new emission norms introduced in 2019 and price increases.
• In the heavy commercial vehicle group whose price level is high and the SCT rates are relatively low, the scrap incentive application, which has a very limited impact, needs to be re-designed to increase the contribution to this group of vehicles.
• In order to rejuvenate the old tractor park of our country and increase productivity in agriculture, tractors should be included in the program.