Ashok Leyland, Switch Mobility Lead Delhi-NCR’s Old Vehicle Replacement Drive

The first Memorandum of Understanding (MoU) under the Government of India’s scheme for replacement of old trucks and buses in the Delhi–NCR region was signed today between the Ministry of Road Transport and Highways (MoRTH) and Ashok Leyland, along with Switch Mobility, a subsidiary of Ashok Leyland.

With the signing of the MoU, Ashok Leyland and Switch Mobility have become the first Original Equipment Manufacturers (OEMs) to partner with the Government for implementation of the scheme. Under the agreement, the companies will provide an 8 per cent discount on the ex-showroom price of eligible trucks and buses purchased under the scheme. For electric vehicles, the discount shall be capped at the discount applicable to an Internal Combustion Engine (ICE) vehicle of the equivalent Gross Vehicle Weight (GVW) category.

In addition to the 8 per cent discount offered by participating OEMs, the Central Government will provide 5 per cent interest subvention and fixed monthly fuel vouchers for a period of five years. Participating State Governments will provide up to 100 per cent concession on motor vehicle tax for a period of ten years and waiver of registration fees for eligible beneficiaries under the scheme.

The Ministry stated that the signing of the first MoU marks an important milestone towards operationalisation of the scheme. The initiative aims to reduce vehicular pollution and support fleet modernisation in the Delhi–NCR region by incentivising owners of trucks and buses complying with Bharat Stage-IV (BS-IV) or earlier emission norms and registered in Delhi–NCR to replace such vehicles with Bharat Stage-VI (BS-VI) or stricter emission-compliant vehicles, or electric vehicles. The Ministry further stated that more automobile OEMs are expected to join the scheme in the coming days, enabling wider participation and greater adoption of cleaner transport technologies.