Mahindra and SML Mahindra Sign MoU for 8% Discount on Trucks and Buses in Delhi-NCR

Key Highlights

• Mahindra and SML Mahindra offer 8 percent ex-showroom discount on new trucks and buses
• State governments provide up to 100 percent motor vehicle tax concessions for ten years
• Discount for electric vehicles matches ICE vehicles in the same weight category
• Five major brands cover about 75 percent of the truck and bus market
• Scheme aims to replace outdated vehicles in Delhi-NCR region

Key Details of the Agreement

Mahindra & Mahindra and SML Mahindra will provide an 8% reduction on the ex-showroom price for eligible trucks and buses purchased through the program. The discount for electric commercial vehicles will not exceed the discount offered for Internal Combustion Engine (ICE) vehicles in the same Gross Vehicle Weight (GVW) category. This ensures parity between electric and ICE vehicle incentives within each weight class.

For a period of ten years, participating state governments will waive registration fees and offer up to 100% concessions on motor vehicle tax for eligible beneficiaries. These measures aim to make new commercial vehicle purchases more affordable and encourage the replacement of older, polluting vehicles.

Broader Industry Participation

Earlier this week, Ashok Leyland, Switch Mobility, and Tata Commercial Vehicles also signed similar Memorandums of Understanding with the government. These five brands collectively hold about 75% of the market share in the trucks and buses segment. Their involvement ensures broad coverage and effective implementation of the vehicle replacement scheme.

The plan targets the replacement of outdated commercial vehicles to reduce emissions and improve air quality in the Delhi-NCR region. The incentives are designed to encourage fleet operators and individual owners to upgrade to newer, cleaner vehicles.

Additional Developments in Commercial Vehicles

In related news, Tata Motors recently secured orders for over 3,400 electric commercial vehicles across different segments. This move supports the ongoing shift toward electric mobility in India's commercial vehicle sector.

The combination of government incentives and industry participation is expected to accelerate the adoption of newer, more efficient trucks and buses. The scheme's focus on both electric and ICE vehicles allows buyers to choose the best option for their operational needs while benefiting from significant cost reductions.