Ashok Leyland, Switch Mobility first OEMs to join Centre's vehicle replacement scheme for Delhi-NCR

Commercial vehicle manufacturer Ashok Leyland and its electric mobility arm Switch Mobility have become the first original equipment manufacturers (OEMs) to partner with the Centre for implementing the recently approved vehicle replacement scheme.

The Ministry of Road Transport and Highways (MoRTH) on Monday signed the first memorandum of understanding (MoU) under the scheme with Ashok Leyland and Switch Mobility, under which the companies will offer an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the programme.

The discount for electric vehicles will be capped at the level applicable to an internal combustion engine (ICE) vehicle of the equivalent gross vehicle weight (GVW) category, according to an official statement.

The signing of the MoU marks the operationalisation of the Centre's ₹9,585-crore scheme approved by the Union Cabinet last week to incentivise the replacement of old trucks and buses in Delhi-NCR with cleaner BS-VI, CNG and electric vehicles.

Apart from the OEM discount, beneficiaries under the scheme will receive a 5% interest subvention on vehicle loans and fixed monthly fuel vouchers for five years from the Central government.

Participating state governments will provide up to 100% concession on motor vehicle tax for a period of 10 years and waive registration fees for eligible beneficiaries.

The ministry said the initiative seeks to accelerate fleet modernisation and curb vehicular pollution by encouraging owners of trucks and buses registered in Delhi-NCR and complying with Bharat Stage-IV (BS-IV) or earlier emission norms to replace them with BS-VI or stricter emission-compliant vehicles, or electric vehicles.

"More automobile OEMs are expected to join the scheme in the coming days, enabling wider participation and greater adoption of cleaner transport technologies," the ministry said.

The two-year programme will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs and implemented jointly by the ministries of road transport and highways and petroleum and natural gas.

Announcing the Cabinet decision last week, Information and Broadcasting Minister Ashwini Vaishnaw had said the scheme forms part of the government's strategy to tackle air pollution in Delhi-NCR through measures such as plantation drives, electric mobility and charging infrastructure development.

According to government estimates, around 2.07 lakh vehicle owners, including nearly 1.91 lakh trucks and 16,329 buses, are expected to benefit from the programme.

The government cited studies by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI), which found that the transport sector contributes 14% of PM2.5 emissions, 40% of carbon monoxide emissions and 63% of nitrogen oxide emissions in Delhi-NCR.

Within the transport sector, trucks and buses account for 36% of PM2.5 emissions despite making up only around 3% of the vehicle fleet.