Ashok Leyland and its electric mobility subsidiary Switch Mobility have signed a Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH) under the Government of India’s vehicle replacement scheme for the Delhi-NCR region.
The agreement marks the first partnership between automobile manufacturers and the government under the scheme, aimed at promoting the replacement of older commercial vehicles with cleaner and electric alternatives.
Under the MoU, Ashok Leyland and Switch Mobility will provide an 8% discount on the ex-showroom price of eligible trucks and buses purchased through the programme.
Push for Electric Commercial Vehicles
For electric vehicles, the discount offered by the manufacturers will be limited to the equivalent incentive applicable to internal combustion engine (ICE) vehicles within the same gross vehicle weight (GVW) category.
Apart from the OEM discount, the scheme will provide additional financial support to buyers, including a 5% interest subvention from the Central Government and fixed monthly fuel vouchers for five years.
State governments participating in the programme will also provide benefits, including up to 100% motor vehicle tax exemption for ten years and waiver of registration charges for eligible customers.
Supporting Fleet Modernisation
The Ministry of Road Transport and Highways said the first MoU signing represents an important step in implementing the vehicle replacement programme, which aims to reduce transport-related pollution and modernise commercial vehicle fleets in the Delhi-NCR region.
The scheme encourages owners of trucks and buses registered in Delhi-NCR and complying with Bharat Stage-IV (BS-IV) or older emission standards to replace them with Bharat Stage-VI (BS-VI) or cleaner vehicles, including electric buses and trucks.
More Automakers Expected to Join
The government expects additional automobile manufacturers to participate in the initiative in the coming weeks, expanding the availability of cleaner commercial vehicles and supporting faster adoption of electric mobility technologies.
The partnership strengthens Ashok Leyland and Switch Mobility’s role in India’s transition towards low-emission transportation and supports the broader goal of reducing vehicle emissions in major urban regions.
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