Ashok Leyland, Switch Mobility Sign MoU for Delhi-NCR Vehicle Replacement Scheme

Ashok Leyland and its electric mobility subsidiary, Switch Mobility, have signed the first agreement under the Centre's vehicle replacement scheme for Delhi-NCR, as per the PTI news report.  

The Memorandum of Understanding (MoU) was signed with the Ministry of Road Transport and Highways (MoRTH), making the 2 companies the first original equipment manufacturers (OEMs) to join the programme. 

Discount Applicable on New Purchases 

Commercial vehicle owners purchasing eligible trucks and buses under the scheme will receive an 8% discount on the ex-showroom price.  

For electric vehicles, the discount will be restricted to the amount available on an equivalent internal combustion engine (ICE) model in the same gross vehicle weight category.  

The government had earlier stated that participating manufacturers would extend this concession. 

Scheme Aims to Replace Ageing Fleet 

The Union Cabinet approved the ₹9,585 crore scheme earlier this month to replace more than 2 lakh old trucks and buses in Delhi-NCR over a 2-year period.  

Official estimates indicate that around 2.07 lakh vehicle owners could benefit, including nearly 1.91 lakh trucks and 16,329 buses that fall under Bharat Stage-IV or older emission standards. 

Additional Incentives Available 

Besides the manufacturer discount, the Centre will provide a 5% interest subvention on vehicle loans and fixed monthly fuel vouchers for 5 years.  

Participating state governments will offer up to 100% concession on motor vehicle tax for 10 years and waive registration fees for eligible applicants.  

These benefits will apply to owners replacing older vehicles with Bharat Stage-VI compliant models or electric vehicles. 

More Manufacturers Expected to Join 

The signing of the 1st MoU is the beginning of the implementation of the scheme. The government has indicated that additional automobile manufacturers are to join the programme in the coming days as the replacement initiative expands across Delhi-NCR. 

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Conclusion 

The scheme has now moved into the implementation stage, with the first participating manufacturers offering discounts and other incentives becoming available to eligible commercial vehicle owners in the region. 

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