More EV Makers Join Centre's Delhi-NCR Vehicle Replacement Scheme

Under the agreements, participating vehicle manufacturers will provide an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the PARIVARTAN scheme.

The Government of India's PARIVARTAN scheme for replacing old trucks and buses in the Delhi-NCR region has received a major boost with more commercial vehicle manufacturers joining the initiative. The Ministry of Road Transport and Highways (MoRTH) has signed fresh Memorandums of Understanding (MoUs) with Olectra Greentech Limited and Montra Electric, expanding industry participation in the programme.

Montra Electric signed the agreements through its business units IPLTECH Electric Private Limited and TIVOLT Electric Vehicles Private Limited, further strengthening support for cleaner commercial transport in the National Capital Region.

Buyers to receive multiple financial incentives

Under the agreements, participating vehicle manufacturers will provide an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the PARIVARTAN scheme. For electric commercial vehicles, the discount will be capped at the level applicable to an equivalent Internal Combustion Engine (ICE) vehicle based on its Gross Vehicle Weight (GVW) category.

The Centre will also provide a 5% interest subvention on eligible vehicle loans along with fixed monthly fuel vouchers for a period of five years, helping reduce operating costs for transport operators replacing older vehicles.

Participating state governments will further support the initiative by offering up to 100% concession on motor vehicle tax for ten years and waiving registration fees for eligible beneficiaries.

More than 95% of the commercial vehicle market now covered

The latest agreements build on MoUs already signed with nine leading commercial vehicle manufacturers.

These include Ashok Leyland, Switch Mobility, Tata Motors, Mahindra & Mahindra, SML Mahindra, Daimler India Commercial Vehicles (DICV), Eicher Trucks and Buses (a business unit of VECV), Force Motors and Pinnacle Mobility Solutions.

With the addition of Olectra Greentech and Montra Electric, manufacturers participating in the scheme now account for more than 95% of India's truck and bus market, significantly expanding the programme's reach and ensuring broad availability of eligible vehicles.

Scheme supports cleaner transport in Delhi-NCR

The PARIVARTAN scheme has been introduced to encourage the replacement of ageing trucks and buses operating in the Delhi-NCR region with newer, cleaner and more efficient vehicles. By combining manufacturer discounts with financial support from the Central and State Governments, the programme aims to reduce vehicle emissions, encourage the adoption of cleaner technologies, including electric vehicles, and improve air quality across the region. The expanded participation of commercial vehicle manufacturers is expected to strengthen the implementation of the scheme and make it easier for transport operators to upgrade their fleets.