Ashok Leyland Signs First MoU Under Delhi-NCR Vehicle Replacement Scheme

The Government of India has taken a significant step toward curbing vehicular pollution in the Delhi-NCR region, with the Ministry of Road Transport and Highways (MoRTH) signing its first Memorandum of Understanding (MoU) under its scheme for replacement of old commercial vehicles. Ashok Leyland and Switch Mobility, its electric vehicle subsidiary, are the inaugural Original Equipment Manufacturers (OEMs) to formally join the initiative.

Under the terms of the agreement, both companies will offer an 8 per cent discount on the ex-showroom price of eligible trucks and buses purchased through the scheme. For electric vehicles, the discount will be capped at the level applicable to an equivalent Internal Combustion Engine (ICE) vehicle of the same Gross Vehicle Weight (GVW) category.

The scheme extends beyond OEM discounts. The Central Government will provide a 5 per cent interest subvention along with fixed monthly fuel vouchers for a period of five years. State governments participating in the scheme may additionally offer up to 100 per cent concession on motor vehicle tax for ten years, as well as a waiver of registration fees for eligible beneficiaries.

The initiative targets owners of trucks and buses that comply with Bharat Stage-IV (BS-IV) or earlier emission standards and are registered in Delhi-NCR, incentivising them to upgrade to Bharat Stage-VI (BS-VI) compliant or electric vehicles.

MoRTH described the MoU signing as an important milestone in operationalising the scheme and indicated that more automobile manufacturers are expected to join in the coming days, broadening the scope of participation and accelerating the transition to cleaner commercial transport in the region.