Ashok Leyland becomes first OEM under Delhi-NCR vehicle replacement scheme
The Ministry of Road Transport and Highways (MoRTH) has signed the first Memorandum of Understanding (MoU) under the Government of India’s vehicle replacement scheme for old trucks and buses in the Delhi-NCR region. The agreement was signed with Ashok Leyland and Switch Mobility, a subsidiary of Ashok Leyland.
With the signing of the MoU, Ashok Leyland and Switch Mobility have become the first Original Equipment Manufacturers (OEMs) to partner with the government for implementation of the scheme.
Benefits under the scheme
Under the agreement, the companies will provide an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the scheme.
For electric vehicles (EVs), the discount will be capped at the level applicable to an Internal Combustion Engine (ICE) vehicle of the equivalent Gross Vehicle Weight (GVW) category.
In addition to the OEM discount, the Central Government will provide a 5% interest subvention and fixed monthly fuel vouchers for five years.
Participating state governments will offer up to 100% concession on motor vehicle tax for a period of 10 years and waive registration fees for eligible beneficiaries.
Scheme objective
According to the ministry, the scheme is aimed at reducing vehicular pollution and supporting fleet modernisation in the Delhi-NCR region.
The programme targets owners of trucks and buses registered in Delhi-NCR that comply with Bharat Stage-IV (BS-IV) or earlier emission norms. These vehicle owners will be incentivised to replace their vehicles with Bharat Stage-VI (BS-VI) or stricter emission-compliant vehicles, or EVs.
Further participation expected
MoRTH said the signing of the first MoU marks an important step towards operationalisation of the scheme. The ministry added that more automobile OEMs are expected to join the initiative in the coming days, enabling wider participation and greater adoption of cleaner transport technologies.
Photo credit: PIB
