Tata Motors joins Delhi-NCR truck, bus replacement scheme; to offer 8% discount on vehicles

Tata Motors on Thursday signed an agreement with the government to implement the recently approved vehicle replacement scheme for Delhi-NCR, under which the automaker will offer an 8% discount on the ex-showroom price of eligible trucks and buses.

The Memorandum of Understanding (MoU) was signed between the Ministry of Road Transport and Highways (MoRTH) and Tata Motors, the ministry said in a statement.

The agreement is part of the operationalisation of the ₹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.

Under the MoU, Tata Motors 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.

The ministry said beneficiaries under the scheme will also receive a 5% interest subvention on vehicle loans and fixed monthly fuel vouchers for five years from the Central government.

The participating state governments will provide up to 100% concession on motor vehicle tax for 10 years and waive registration fees for eligible beneficiaries.

"Together, these companies have around 50% of the market share in trucks and buses," the ministry said.

The initiative seeks to accelerate fleet modernisation and reduce 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.

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.

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 has 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 constituting only around 3% of the vehicle fleet, according to the studies.