BharatBenz Joins Vehicle Scrappage Scheme for Delhi-NCR

Under the agreement, BharatBenz will provide an 8 percent discount on the ex-showroom price of eligible trucks and buses purchased under the scheme.

The Ministry of Road Transport and Highways (MoRTH) has signed a Memorandum of Understanding (MoU) with Daimler India Commercial Vehicles (DICV), the manufacturer of the BharatBenz brand, to support the Government of India's vehicle replacement programme in the Delhi-NCR region. The scheme is aimed at encouraging the replacement of older trucks and buses with cleaner, more efficient vehicles while reducing vehicular emissions and improving air quality in one of the country's most polluted regions.

Under the agreement, BharatBenz will provide an 8 percent discount on the ex-showroom price of eligible trucks and buses purchased under the scheme. For electric commercial vehicles, the discount will be limited to the equivalent benefit available for an Internal Combustion Engine (ICE) vehicle within the same Gross Vehicle Weight (GVW) category.

Multiple Financial Incentives for Vehicle Owners

The vehicle replacement programme combines support from the Central Government, state governments and participating manufacturers to make fleet modernisation more affordable. In addition to the manufacturer discount, the Central Government will offer a 5 percent interest subvention on eligible vehicle purchases. Beneficiaries will also receive fixed monthly fuel vouchers for a period of five years.

State governments participating in the scheme will provide significant tax benefits, including concessions of up to 100 percent on motor vehicle tax for ten years. Eligible vehicle owners will also receive a waiver of registration fees. Officials believe these incentives will encourage transport operators and fleet owners to replace ageing vehicles with newer, cleaner alternatives that offer improved fuel efficiency and lower emissions.

Major Manufacturers Back the Initiative

BharatBenz joins a growing list of commercial vehicle manufacturers that have partnered with the government to implement the scheme. Earlier agreements were signed with Ashok Leyland, Switch Mobility, Tata Motors, Mahindra & Mahindra and SML Mahindra. Together, these manufacturers account for approximately 85 percent of India's truck and bus market, providing broad industry participation and expanding the reach of the programme.

The government's vehicle replacement initiative forms part of wider efforts to modernise India's commercial transport sector, improve road safety, reduce pollution and accelerate the adoption of cleaner transportation technologies across the country.