BharatBenz maker Daimler joins Delhi-NCR truck, bus replacement scheme; to offer 8% discount

Daimler India Commercial Vehicles (DICV), which owns the BharatBenz brand, on Tuesday signed an agreement with the government to offer discounts on replacement of old trucks and buses in Delhi-NCR under the Centre’s vehicle modernisation scheme.

The memorandum of understanding (MoU) was signed between the Ministry of Road Transport and Highways (MoRTH) and DICV, under which the company will provide an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the scheme.

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

The agreement is part of the operationalisation of the ₹9,585-crore scheme approved by the Union Cabinet to incentivise replacement of old trucks and buses in Delhi-NCR with cleaner BS-VI, CNG and electric vehicles.

Apart from the discount offered by participating original equipment manufacturers (OEMs), the central government will provide a 5% interest subvention on vehicle loans and fixed monthly fuel vouchers for five years.

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

Ashok Leyland, Switch Mobility, Tata Motors, Mahindra and Mahindra, and SML Mahindra have already signed similar agreements with the government.

According to the ministry, these companies together account for around 85% of the trucks and buses market.

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

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.

The government estimates that around 2.07 lakh vehicle owners, including nearly 1.91 lakh trucks and 16,329 buses, will benefit from the programme.

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