Commercial vehicle major Ashok Leyland and its electric mobility arm Switch Mobility have become the first original equipment manufacturers (OEMs) to partner with the Government of India under the newly launched vehicle replacement scheme aimed at modernising truck and bus fleets in the Delhi-NCR region.
The first memorandum of understanding (MoU) under the scheme was signed between the Ministry of Road Transport and Highways (MoRTH), Ashok Leyland and Switch Mobility, marking a key milestone in the operationalisation of the Centre’s initiative to reduce vehicular pollution and accelerate the adoption of cleaner transport technologies.
8% discount for eligible vehicle replacements
Under the agreement, Ashok Leyland and Switch Mobility will offer an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the scheme.
For electric vehicles, the discount will be capped at the level applicable to an Internal Combustion Engine (ICE) vehicle within the corresponding Gross Vehicle Weight (GVW) category.
The scheme is designed to encourage owners of older commercial vehicles in the Delhi-NCR region to replace their fleets with cleaner and more efficient alternatives.
Additional government incentives
Apart from the OEM discount, the Central Government will provide a 5% interest subvention and fixed monthly fuel vouchers for a period of five years to eligible beneficiaries.
Participating State Governments will further support the initiative through concessions of up to 100% on motor vehicle tax for ten years, along with a waiver of registration fees for qualifying vehicle owners.
The combined incentives are expected to significantly reduce the cost of fleet replacement and encourage faster adoption of Bharat Stage-VI (BS-VI) compliant and electric commercial vehicles.
Targeting older polluting vehicles
According to the Ministry, the scheme specifically targets trucks and buses registered in Delhi-NCR that comply with Bharat Stage-IV (BS-IV) or earlier emission norms.
Eligible vehicle owners will be incentivised to replace these older vehicles with BS-VI or stricter emission-compliant vehicles, or electric vehicles, thereby contributing to improved air quality in one of India’s most pollution-affected regions.
More OEMs expected to join
The Ministry of Road Transport and Highways said the signing of the first MoU represents an important step towards the broader implementation of the programme.
It added that several other automobile manufacturers are expected to join the initiative in the coming days, enabling wider industry participation and accelerating the transition towards cleaner, greener and more sustainable commercial transportation in the Delhi-NCR region.
The scheme forms part of the Government’s broader efforts to tackle vehicular emissions, modernise ageing fleets and support India’s long-term environmental and sustainability goals.