Muddled Gov’t Policies Hit Scrap Yards Hard

Roughly nine out of ten scrappage centers have been forced to shutter their business and the remaining are grasping at straws as ill-conceived government policies in the auto sector start to show signs of stark failure.
Scrappage centers are shutting down one after another as domestic car makers are exempted from the scrappage scheme and auto imports are on the wane as a result of spiking tariff rates, reported Khodrokar.
Head of the Association for Scrappage and Recycling Centers, Mostafa Joudi says 90% of scrappage centers have been forced to shut down their business and the remaining are struggling to survive.
Introduction of scrappage programs is creme de la creme of government-funded strategies to promote the replacement of gas-guzzlers with modern vehicles. The plans aim to remove fuel-intensive high-emission cars from the roads.
Many countries have implemented such schemes to stimulate the auto industry and protect the environment, killing two birds with one stone.
Joudi underscored the role played by the administration of President Hassan Rouhani leading to the current stagnant state scrappage centers are stuck in.