Ashok Leyland Becomes First OEM to Join Delhi-NCR Vehicle Replacement Scheme, Offers Discounts on New Trucks and Buses

Key Highlights

• Ashok Leyland signs first MoU under Delhi-NCR replacement scheme.

• 8% discount offered on eligible trucks and buses.

• Government provides 5% interest subvention for buyers.

• Monthly fuel vouchers available for five years.

• BS-IV and older vehicles can be replaced with BS-VI or EVs.

In a major step toward reducing vehicular pollution in the Delhi-NCR region, the Ministry of Road Transport and Highways (MoRTH) has signed its first Memorandum of Understanding (MoU) under the commercial vehicle replacement scheme. Ashok Leyland and its electric mobility subsidiary, Switch Mobility, have become the first Original Equipment Manufacturers (OEMs) to officially join the government's fleet modernisation initiative.

The partnership aims to encourage owners of older commercial vehicles to replace them with cleaner and more fuel-efficient models, helping improve air quality across the region.

Discounts on New Trucks, Buses and Electric Vehicles

As part of the agreement, Ashok Leyland and Switch Mobility will provide an 8 percent discount on the ex-showroom price of eligible trucks and buses purchased under the scheme.

For electric commercial vehicles, the discount will be limited to the amount applicable to an equivalent Internal Combustion Engine (ICE) vehicle within the same Gross Vehicle Weight (GVW) category.

Additional Benefits for Vehicle Owners

Apart from the OEM discount, vehicle owners will receive several financial incentives from the government.

The Central Government will offer a 5 percent interest subvention on vehicle loans along with fixed monthly fuel vouchers for five years. Participating state governments may also provide up to 100 percent exemption on motor vehicle tax for a period of ten years. In addition, eligible beneficiaries can receive a complete waiver of registration fees.

These incentives are designed to reduce the overall cost of replacing older commercial vehicles with cleaner alternatives.

Who Can Benefit From the Scheme?

The scheme is aimed at owners of trucks and buses registered in the Delhi-NCR region that comply with Bharat Stage-IV (BS-IV) or older emission standards.

Eligible vehicle owners can upgrade to Bharat Stage-VI (BS-VI) compliant vehicles or switch to electric commercial vehicles under the programme.

More Automakers Expected to Join

According to the Ministry of Road Transport and Highways, the signing of this MoU marks an important milestone in the implementation of the vehicle replacement scheme. The ministry has indicated that several other automobile manufacturers are expected to join the initiative in the coming days.

With broader participation from the industry, the government hopes to accelerate the adoption of cleaner commercial vehicles and support the transition toward a more sustainable transport ecosystem in the Delhi-NCR region.

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CMV360 Says

The Delhi-NCR Vehicle Replacement Scheme marks an important step toward reducing pollution from older commercial vehicles. With Ashok Leyland and Switch Mobility becoming the first OEMs to join, vehicle owners can benefit from attractive discounts and government incentives. The initiative encourages the adoption of BS-VI and electric vehicles while lowering replacement costs. As more manufacturers join the programme, the scheme is expected to accelerate fleet modernization and support cleaner transportation across the region.