Ashok Leyland Becomes First Partner in Delhi-NCR Vehicle Replacement Scheme

Under the agreement, eligible buyers replacing old trucks and buses will receive an 8 per cent discount on the ex-showroom price of new vehicles from Ashok Leyland and Switch Mobility. F

The Government's push to replace older polluting commercial vehicles in Delhi-NCR reached a major milestone on Monday with the signing of the first Memorandum of Understanding (MoU) under the truck and bus replacement scheme. The agreement was signed between the Ministry of Road Transport and Highways (MoRTH), Ashok Leyland, and Switch Mobility, the company's electric vehicle subsidiary.

With this partnership, Ashok Leyland and Switch Mobility have become the first automobile manufacturers to join the scheme, which is aimed at encouraging cleaner and more efficient transport across the National Capital Region.

Buyers to Receive Multiple Financial Incentives

Under the agreement, eligible buyers replacing old trucks and buses will receive an 8 per cent discount on the ex-showroom price of new vehicles from Ashok Leyland and Switch Mobility. For electric vehicles, the discount will be capped at the level applicable to an equivalent internal combustion engine vehicle within the same Gross Vehicle Weight category.

The benefits do not stop there. The Central Government will also provide a 5 per cent interest subvention along with fixed monthly fuel vouchers for a period of five years. These incentives are designed to reduce the financial burden on fleet operators while encouraging them to shift towards cleaner technologies.

State governments participating in the programme will further support vehicle owners through substantial tax relief. Eligible beneficiaries can receive up to 100 per cent concession on motor vehicle tax for ten years, along with a complete waiver of registration fees.

Scheme Targets Older Polluting Commercial Vehicles

The initiative focuses on replacing trucks and buses registered in Delhi-NCR that comply with Bharat Stage-IV (BS-IV) emission norms or older standards. Vehicle owners will be encouraged to retire these ageing vehicles and replace them with Bharat Stage-VI (BS-VI) compliant models or electric alternatives.

Authorities believe the programme can play an important role in reducing vehicular emissions, which remain one of the major contributors to air pollution in the region. At the same time, it is expected to accelerate fleet modernisation by introducing newer vehicles equipped with cleaner and more efficient technologies.

More Manufacturers Expected to Join

According to the Ministry of Road Transport and Highways, the signing of the first MoU marks the beginning of the scheme's operational rollout. Officials said discussions are underway with other automobile manufacturers, and more Original Equipment Manufacturers (OEMs) are expected to join in the coming weeks.

Broader participation from vehicle makers could increase the number of options available to transport operators while supporting the adoption of cleaner commercial vehicles on a larger scale. The government sees the initiative as an important step towards improving air quality, promoting sustainable mobility and encouraging the transition to advanced emission-compliant and electric transport solutions in Delhi-NCR.