JBM Auto, Olectra shares jump after Cabinet clears Delhi-NCR fleet replacement scheme

The scheme seeks to incentivise owners of trucks and buses registered in the Delhi-NCR that comply with BS-IV or earlier emission norms to replace them with BS-VI or stricter emission-compliant vehicles or electric vehicles (EVs).

Under the scheme, the centre will provide a 5% interest subvention on loans for five years, monthly fuel vouchers worth up to ₹4,800 depending on vehicle category, and lump-sum benefits for EV purchases or certificate of deposit trading.

The scheme will benefit approximately 2.07 lakh (1.91 lakh trucks and 16,329 buses) owners in Delhi and NCR states, such as Haryana, Rajasthan, and Uttar Pradesh.

What the auto industry said

The government's scheme for the replacement of old trucks and buses in the Delhi-NCR area is a "positive step" that could accelerate the adoption of cleaner vehicles and help reduce pollution levels, the auto industry said on Wednesday.

Society of Indian Automobile Manufacturers (SIAM) President Shailesh Chandra said this will "provide an opportunity to owners of old commercial vehicles to leverage the programme, thereby contributing to reducing pollution load in NCR".

The package of incentives would provide owners of old commercial vehicles an opportunity to participate in the programme and transition to newer, cleaner vehicles.

"This is a positive step towards accelerating the adoption of cleaner vehicles in Delhi NCR," Chandra added.

How shares were faring

When last seen, JBM Auto shares were trading nearly 6.25% higher at ₹711.05 apiece on the NSE, while Olectra Greentech shares jumped up to 3.87% to touch a high of ₹1,372.40 apiece on the NSE.

What you need to know

The government’s decision to roll out a vehicle replacement scheme for ageing trucks and buses in the Delhi-NCR region is a significant positive for electric bus makers such as JBM Auto and Olectra Greentech.

By incentivising the replacement of BS-IV and older diesel vehicles with BS-VI or electric alternatives, the policy is expected to accelerate demand for electric buses, especially in urban public transport fleets where both companies have strong positioning. This could translate into a healthier order pipeline, improved revenue visibility, and stronger execution momentum over the medium term.

From a stock perspective, the announcement has a clear sentiment boost, as it reinforces long-term structural demand for clean mobility solutions.

About JBM Auto

JBM Auto Ltd, founded in 1983 and headquartered in Faridabad, Haryana, is one of the leading Indian automotive and electric vehicle (EV) manufacturers. A flagship company of the $3.3 billion JBM Group, it specialises in auto components, EV ecosystems, and zero-emission public transportation.

About Olectra Greentech

Olectra Greentech is a Hyderabad-based, well-known EV company, specialising in the manufacturing of pure electric buses, electric trucks, and composite polymer insulators.