Mahindra & Mahindra and SML Mahindra have signed a memorandum of understanding (MoU) with India’s Ministry of Road Transport and Highways (MoRTH) to participate in a government scheme for the replacement of old trucks and buses in India’s National Capital Region (Delhi–NCR). Under the agreement, participating manufacturers will offer an 8% discount on eligible commercial vehicles.

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, Switch Mobility, and Tata Motors signed equivalent MoUs with MoRTH earlier in the week. Together, the five companies hold a combined market share of approximately 75% in trucks and buses, giving the scheme broad commercial coverage across India’s commercial vehicle sector.

The scheme targets older commercial vehicles with 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