Mahindra & Mahindra Ltd. and SML Mahindra have signed a Memorandum of Understanding with the Ministry of Road Transport and Highways (MoRTH), joining the Government of India's scheme for the replacement of old trucks and buses in the Delhi-NCR region. The agreement was signed on June 19, 2026.
Under the MoU, the two companies will provide an 8 per cent 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 of the equivalent Gross Vehicle Weight (GVW) category.
Besides the manufacturer discount, the Central Government will offer a 5 per cent interest subvention and fixed monthly fuel vouchers for five years to beneficiaries. Participating state governments will provide up to 100 per cent concession on motor vehicle tax for ten years, along with a waiver of registration fees for eligible beneficiaries.
Mahindra and SML Mahindra join three other manufacturers — Ashok Leyland, Switch Mobility, and Tata Motors — who signed similar MoUs with the government earlier in the week. Together, the five participating companies account for around 75 per cent of the market share in the trucks and buses segment, giving the scheme significant coverage for implementation.