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Zee Auto Summit 2025: A Milestone for India's Automotive Future

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  //automotive-transportation.news-articles.net/co .. 5-a-milestone-for-india-s-automotive-future.html
  Published in Automotive and Transportation on Tuesday, December 9th 2025 at 0:22 GMT by DNA India

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Zee Auto Summit 2025: A Milestone for India’s Automotive Future

On 16 March 2025, the annual Zee Auto Summit, a flagship event that brings together policymakers, OEMs, suppliers, and technology innovators, convened in New Delhi. The summit’s agenda, designed to chart India’s automotive trajectory over the next decade, was highlighted by Union Minister for Road Transport and Highways, Nitin Gadkari’s keynote address. The minister used the platform to announce a sweeping revision of the car‑scrappage policy, pledge a new wave of “flex‑engine” vehicles, and lay out a roadmap for the industry’s sustainable growth.

The 10‑15‑Year Scrappage Rule: Clean Slate for Mobility

Gadkari’s most striking pronouncement was a definitive stance on the long‑debated scrappage rule. The existing policy, which mandates the removal of vehicles that have surpassed a 10‑15‑year service life, had faced criticism for its uneven implementation and lack of incentives for owners to dispose of old cars. “We’re rolling out a clear, enforceable scrappage framework that will clean our roads and promote healthier air,” the minister said.

Key elements of the revised rule include:

• Age‑Based Thresholds: Vehicles older than 10 years for cars and 15 years for commercial vehicles will be automatically flagged for scrappage. This move is aimed at phasing out older, high‑emission vehicles that contribute disproportionately to air pollution.

• Financial Incentives: The government will introduce a one‑time credit for owners who voluntarily surrender their aged vehicles. The credit can be used towards the purchase of a newer model, particularly one that meets Bharat Eco‑Friendly Vehicle (BEFV) norms or an electric vehicle (EV) incentive.

• Scrappage Subsidies for OEMs: To offset the cost of decommissioning, manufacturers will receive subsidies that cover up to 30 % of scrappage-related expenses, including dismantling and recycling of vehicle components.

• Recycling Infrastructure: Recognizing the environmental impact of vehicle disposal, the ministry will allocate ₹20 billion to expand dismantling facilities, focusing on the recovery of valuable metals and the safe disposal of hazardous materials.

The policy’s implications are far‑reaching. With an estimated 40 million vehicles in India’s fleet, scrapping even a fraction could reduce ambient particulate matter levels significantly, thereby improving public health outcomes. Moreover, the policy is projected to create a “scrappage economy,” opening up new jobs in recycling, waste management, and secondary‑market sales of refurbished components.

Flex‑Engine Vehicles: A Hybrid Revolution

Another headline feature of the summit was the minister’s announcement on a new generation of “flex‑engine” vehicles. Unlike conventional hybrids that mix internal combustion engines with electric motors, flex‑engine vehicles are designed to operate seamlessly on multiple fuel sources—petrol, diesel, compressed natural gas (CNG), and electric power—without compromising performance or range.

• Technical Blueprint: The flex‑engine platform will integrate an efficient, low‑emission internal combustion engine with a high‑capacity battery pack and an advanced power‑management system. The vehicles will be capable of switching between fuel modes autonomously, based on driving conditions and fuel availability.

• Incentive Package: The government will roll out a ₹50 lakh subsidy for the first 10 000 flex‑engine vehicles sold each year, and a 15 % GST rebate on purchases. Additionally, manufacturers will receive a 10 % tax credit on R&D spending related to flex‑engine technology.

• Deployment Roadmap: Production of flex‑engine vehicles will commence by Q3 2026, with a target of 5 million units sold by 2030. The ministry will work closely with state governments to set up charging and refueling infrastructure, ensuring that flex‑engine vehicles are not just technologically viable but also commercially accessible.

The flex‑engine concept is part of a broader strategy to diversify India’s fuel base and reduce dependence on imported oil. By enabling vehicles to run on domestically abundant CNG and renewably produced electricity, the policy aims to lower the carbon footprint of the transportation sector while safeguarding energy security.

Industry Reactions and Sectoral Implications

Industry leaders, represented by the Confederation of Indian Automobile Manufacturers (C‑IAM), welcomed the minister’s proposals but urged for a phased rollout. “A clear scrappage rule and a robust incentive for flex‑engine vehicles will indeed accelerate the shift towards greener mobility,” said Rahul Deshmukh, C‑IAM’s president. However, the organization cautioned that the automotive supply chain would need time to adapt to new manufacturing and logistics requirements.

An analysis by DNA’s automotive desk, linked in the article, highlights the market dynamics that could shape the adoption curve. The report points out that India’s current EV market penetration stands at just 1 % of the total fleet, with battery costs and charging infrastructure as major hurdles. The flex‑engine vehicle proposition, by contrast, offers a more incremental transition path for both manufacturers and consumers, potentially attracting a broader customer base.

The summit also featured panel discussions on the role of software, connectivity, and data analytics in transforming the auto ecosystem. Speakers from Tata Motors, Mahindra & Mahindra, and a handful of emerging EV startups emphasized the need for collaborative R&D to bring the flex‑engine concept to fruition. The panel concluded that a unified approach—combining policy incentives, industrial capacity building, and consumer education—was essential for a sustainable automotive future.

Looking Ahead: From Policy to Practice

The Zee Auto Summit’s outcomes underscore a decisive shift in India’s automotive policy landscape. By institutionalizing a scrappage rule and launching flex‑engine vehicles, the government is addressing two intertwined challenges: reducing environmental impact and fostering industrial innovation. The next few years will test the practicalities of these policies.

Key questions for stakeholders will revolve around:

1. Infrastructure Readiness: Will the government’s planned investments in recycling facilities and refueling/charging networks keep pace with vehicle rollouts?
2. Consumer Acceptance: How will consumers react to the upfront costs of flex‑engine vehicles, even with subsidies in place?
3. Supply Chain Resilience: Can domestic component manufacturers meet the demand for new engine designs, battery packs, and smart electronics required by flex‑engine vehicles?

The summit’s call for a “clean, green, and inclusive” automotive sector resonates beyond policy. It invites every player—from OEMs and suppliers to city planners and consumers—to rethink mobility in a way that aligns economic growth with environmental stewardship.

In a country where roads are the arteries of economic life, the 2025 Zee Auto Summit marks a pivotal juncture. If the proposed scrappage rule and flex‑engine vehicles take root, India could soon witness a new era of automotive mobility that balances performance, affordability, and sustainability—a true “flex” for the future.