Tata Motors has signed a memorandum of understanding (MoU) with India’s Ministry of Road Transport and Highways (MoRTH) to participate in a government scheme for replacing old trucks and buses in India’s National Capital Region (Delhi–NCR). Under the terms, the automaker will offer an 8% discount on the ex-showroom price of eligible commercial vehicles purchased under the scheme.

For electric vehicles, the 8% discount is capped at the rate applicable to an equivalent internal combustion engine (ICE) vehicle by gross vehicle weight (GVW) category. The central government will provide 5% interest subvention and fixed monthly fuel vouchers for five years. State governments will offer up to 100% concession on motor vehicle tax for 10 years and waive registration fees for eligible vehicles.

Ashok Leyland and Switch Mobility signed equivalent MoUs with MoRTH earlier in the week. Together with Tata Motors, the three participating companies hold a combined market share of approximately 50% in trucks and buses, establishing a meaningful commercial base for the scheme’s implementation.

The scheme targets older commercial vehicles specifically, using a multi-layered incentive structure. By combining manufacturer discounts with government interest subvention and state-level tax concessions, it aims to accelerate replacement without relying on direct purchasing subsidies.

Source: PIB