Commercial vehicle major Ashok Leyland has welcomed the Central government’s recently approved vehicle scrappage programme for the Delhi-NCR region, saying the initiative will improve productivity, enhance road safety, reduce emissions and lower logistics costs.
The Union Cabinet recently cleared a ₹9,585-crore fleet modernisation scheme aimed at replacing over 2 lakh ageing trucks and buses in the NCR region with cleaner BS-VI and electric vehicles over the next two years. The programme includes financial incentives, tax concessions, fuel support and manufacturer discounts to accelerate the retirement of older, polluting vehicles.
Younger fleet to boost efficiency
In a LinkedIn post, Ashok Leyland Managing Director & CEO Shenu Agarwal said the scheme would deliver multiple benefits for customers, the industry and society at large.
He noted that the average age of India’s truck fleet has crossed 10 years, significantly higher than historical levels, creating an opportunity for fleet modernisation.
“A younger fleet can significantly improve productivity while reducing emissions and enhancing road safety. New-generation commercial vehicles offer better fuel efficiency, higher payload capability, improved driver comfort and substantially lower emissions,” Agarwal said.
He added that accelerating the adoption of modern commercial vehicles would create a win-win situation for transport operators, manufacturers and communities.
Demand opportunity for CV makers
The fleet replacement programme is also expected to provide a demand boost for commercial vehicle manufacturers at a time when the industry has witnessed cyclical slowdowns in recent years.
With India continuing to invest heavily in infrastructure, manufacturing and logistics, a younger and more efficient vehicle fleet will be critical in supporting economic growth and improving supply-chain efficiency, according to industry stakeholders.
The scheme is expected to encourage fleet owners to replace older vehicles with BS-VI and electric alternatives, helping reduce pollution levels in the NCR region while improving operating economics for transporters.
Industry backs modernisation push
Agarwal, said, “As India continues to invest in infrastructure, manufacturing and logistics, a younger and more efficient fleet will play a critical role in supporting our nation’s growth. At Ashok Leyland, we welcome this progressive move and look forward to contributing to a cleaner, safer and more productive transportation ecosystem.”
The government’s scrappage initiative is expected to support environmental goals, improve road safety standards and strengthen demand for next-generation commercial vehicles, while accelerating the transition towards cleaner mobility solutions.