Ashok Leyland & Switch Mobility Become First OEMs to Join Delhi-NCR Vehicle Scrappage Scheme

Ashok Leyland and its electric mobility arm, Switch Mobility, have become the first Original Equipment Manufacturers (OEMs) to partner with the Government of India under the vehicle replacement scheme for old trucks and buses in the Delhi-NCR region. The first Memorandum of Understanding (MoU) under the scheme was signed between the Ministry of Road Transport and Highways (MoRTH), Ashok Leyland and Switch Mobility.

As part of the agreement, the companies will offer an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the scheme. For electric vehicles, the discount will be capped at the level applicable to an equivalent Internal Combustion Engine (ICE) vehicle in the same 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.