Ashok Leyland and its electric mobility arm, Switch Mobility, have become the first original equipment manufacturers (OEMs) to sign an agreement under the Centre’s vehicle replacement scheme for Delhi-NCR, offering an 8% discount on eligible truck and bus purchases to encourage the scrapping of older, polluting vehicles.
According to a Ministry of Road Transport and Highways (MoRTH) release, the companies signed a Memorandum of Understanding (MoU) with the Delhi government, marking the operational rollout of the recently approved programme aimed at replacing ageing commercial vehicles across the National Capital Region.
Under the agreement, Ashok Leyland and Switch Mobility will provide an 8% discount on the ex-showroom price of trucks and buses purchased under the scheme. For electric vehicles, the discount will be capped at the level applicable to an equivalent internal combustion engine (ICE) vehicle within the same gross vehicle weight category.
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The MoU makes Ashok Leyland and Switch Mobility the first OEMs to formally participate in the initiative, which was approved by the Union Cabinet on June 3 with an outlay of Rs 9,585 crore.
The scheme seeks to replace more than two lakh older trucks and buses operating in Delhi-NCR, with a focus on Bharat Stage-IV (BS-IV) and older vehicles.
In addition to the OEM discount, the Central government will provide a 5% interest subvention on vehicle loans and fixed monthly fuel vouchers for five years. Participating state governments will offer up to 100% concession on motor vehicle tax for 10 years and waive registration fees for eligible beneficiaries.
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The government expects the scheme to accelerate fleet modernisation, promote the adoption of Bharat Stage-VI-compliant and electric commercial vehicles, and help curb transport-related emissions in the Delhi-NCR region.
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