Mahindra & Mahindra Ltd and SML Mahindra have signed a Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH) under the Central government's scheme to replace old trucks and buses in the Delhi-National Capital Region (NCR). This development follows similar agreements with Ashok Leyland, Switch Mobility, and Tata Motors earlier this week.
Key Incentives Under the Agreement
Under the terms of the agreement, participating original equipment manufacturers (OEMs) will offer an eight per cent discount on the ex-showroom price of eligible trucks and buses purchased as replacements. For electric vehicles, the discount will be capped at the level applicable to an Internal Combustion Engine (ICE) vehicle of the equivalent Gross Vehicle Weight (GVW) category.
Additional Government Benefits
Beyond the OEM discount, the Central Government will provide a five per cent interest subvention along with fixed monthly fuel vouchers for five years. Participating state governments are also expected to offer up to 100 per cent concession on motor vehicle tax for ten years and waive registration fees for eligible beneficiaries.
Market Coverage
The five participating manufacturers—Mahindra & Mahindra, SML Mahindra, Ashok Leyland, Switch Mobility, and Tata Motors—collectively hold a market share of around 75 per cent in the trucks and buses segment. This significant coverage is expected to facilitate the effective implementation of the vehicle replacement scheme in the Delhi-NCR region.
Earlier Signatories
Earlier this week, Ashok Leyland, Switch Mobility, and Tata Motors signed similar MoUs with the government. The scheme aims to phase out old and polluting commercial vehicles, promoting cleaner and more efficient transportation in the region.
