### Summary of Tata Motors’ Participation in the Vehicle Scrappage Scheme
**Overview**
On June 18, 2026, Tata Motors signed a Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH) to participate in the Government of India's scheme for the replacement of old trucks and buses in the Delhi-NCR region. This agreement follows similar MoUs signed earlier in the same week by Ashok Leyland and Switch Mobility. Collectively, these participating Original Equipment Manufacturers (OEMs) represent approximately 50% of the market share in the trucks and buses segment.
**OEM Financial Incentives**
Under the terms of the agreement, Tata Motors will provide an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the scheme. For electric vehicles (EVs), the discount is capped at the amount applicable to an Internal Combustion Engine (ICE) vehicle of an equivalent Gross Vehicle Weight (GVW) category.
**Government Financial Support**
The scheme includes significant incentives provided by both the Central and State governments:
* **Central Government:** Offers a 5% interest subvention and fixed monthly fuel vouchers for a duration of five years.
* **State Governments:** Provide up to a 100% concession on motor vehicle tax for a period of ten years and a full waiver of registration fees for eligible beneficiaries.
**Administrative Information**
* **Source:** PIB Delhi, Ministry of Road Transport & Highways
* **Release ID:** 2274810
* **Date:** June 18, 2026
Key Entities Referenced
Scheme for replacement of old trucks and buses: A government initiative providing discounts, interest subvention, and tax concessions to replace old commercial vehicles with newer, more efficient models.
Ministry of Road Transport and Highways (MoRTH): The central ministry overseeing the implementation of the vehicle replacement scheme and signatory to the Memorandums of Understanding with manufacturers.
Delhi-NCR: The primary geographic region where the vehicle replacement scheme is being implemented and targeted.
TATA Motors: A major automotive manufacturer that signed an agreement to provide an 8 percent discount on new trucks and buses under the scheme.
Ashok Leyland and Switch Mobility: Participating original equipment manufacturers (OEMs) that have signed MoUs to support the implementation of the vehicle replacement initiative.
Ministry of Road Transport & Highways
TATA Motors also joins the Government of India
scheme to provide discounts for the replacement
of old trucks and buses in Delhi-NCR
प्रव तथ: 18 JUN 2026 7:02PM by PIB Delhi
The 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 Tata Motors.
Under the agreement, the OEM 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.
Earlier in the week, Ashok Leyland and Switch Mobility have also signed the MoU with the Government
for implementation of the scheme. Together, these companies have around 50% of the market share in
trucks and buses.***
GDH/DS
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