Ashok Leyland and Switch Mobility become the first OEMs to provide discounts under the scheme for replacement of old trucks and buses in Delhi-NCR

**Executive Summary** The Ministry of Road Transport and Highways (MoRTH) signed the first Memorandum of Understanding (MoU) with Ashok Leyland and Switch Mobility on June 15, 2026, to implement a fleet modernization scheme in Delhi-NCR. The initiative aims to reduce pollution by incentivizing the replacement of old trucks and buses with BS-VI or electric vehicles through significant discounts and government subsidies. Key financial benefits include ex-showroom discounts, interest subventions, and tax waivers over periods ranging from five to ten years. **Key Points / Main Content** * **OEM Discounts and Participation** * Ashok Leyland and its subsidiary, Switch Mobility, are the first manufacturers to provide discounts under this scheme. * Participating OEMs will offer an 8% discount on the ex-showroom price of eligible new trucks and buses. * For electric vehicles, the 8% discount is capped at the amount applicable to an equivalent Internal Combustion Engine (ICE) vehicle category. * **Government Financial Incentives** * The Central Government will provide a 5% interest subvention for eligible beneficiaries. * Beneficiaries will receive fixed monthly fuel vouchers for a period of five years. * State Governments will provide up to a 100% concession on motor vehicle tax for ten years. * Registration fees for replacement vehicles will be waived by participating State Governments. * **Eligibility and Environmental Standards** * The scheme targets owners of trucks and buses registered in Delhi-NCR that comply with Bharat Stage-IV (BS-IV) or earlier emission norms. * Old vehicles must be replaced with Bharat Stage-VI (BS-VI) vehicles, stricter emission-compliant models, or electric vehicles. * The Ministry expects more automobile OEMs to join the scheme to increase the adoption of cleaner transport technologies. **Impact Analysis** **Ashok Leyland and Switch Mobility** **Impact:** Recognized as the inaugural OEM partners for the government’s fleet modernization initiative, potentially increasing their market share in the Delhi-NCR region. **Action Required:** Implement the agreed 8% discount on ex-showroom prices for eligible vehicle purchases under the scheme. **Owners of BS-IV or Older Trucks and Buses in Delhi-NCR** **Impact:** They gain access to multiple financial incentives, including discounts, interest subventions, fuel vouchers, and tax waivers, making fleet renewal more affordable. **Action Required:** Replace older, non-compliant vehicles with BS-VI or electric models to avail of the scheme’s benefits. **Other Automobile OEMs** **Impact:** Competitive pressure to join the scheme to remain relevant in the Delhi-NCR commercial vehicle market. **Action Required:** Expected to sign MoUs with the Ministry to enable wider participation and offer similar discounts. **Central and State Governments** **Impact:** Commitment of financial resources for interest subvention, fuel vouchers, and a reduction in tax revenue for up to ten years. **Action Required:** Operationalize the scheme and ensure the delivery of promised concessions and registration waivers to eligible beneficiaries.

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