Tata Motors on Thursday joined Ashok Leyland and Switch Mobility in the Government of India’s ₹9,585-crore Delhi-NCR fleet renewal programme, expanding industry participation in a scheme designed to replace older, polluting trucks and buses with cleaner BS-VI and electric vehicles. Under the programme, participating manufacturers offer an 8 per cent discount on eligible vehicles, supplemented by interest subsidies, fuel vouchers and state-level tax concessions.

The Memorandum of Understanding (MoU) signed between Tata Motors and the Ministry of Road Transport and Highways (MoRTH) makes the company the latest commercial vehicle manufacturer to participate in the initiative. Ashok Leyland and its electric mobility arm Switch Mobility had signed similar agreements earlier this week.

Together, the participating manufacturers account for around 50 per cent of India’s truck and bus market, giving the scheme significant reach among fleet operators in the National Capital Region.

How the Scheme Works

The fleet renewal programme is aimed at accelerating the replacement of older commercial vehicles operating in Delhi-NCR, where ageing truck and bus fleets remain a major source of vehicular emissions.

Under the scheme, participating OEMs provide an 8 per cent discount on the ex-showroom price of eligible new trucks and buses purchased against the replacement of older vehicles.

The incentive applies to both internal combustion engine (ICE) and electric commercial vehicles. However, for electric vehicles, the discount is capped at the total discount value applicable to an equivalent ICE vehicle in the same Gross Vehicle Weight (GVW) category.

Which Vehicles Qualify

The programme targets trucks and buses complying with Bharat Stage-IV (BS-IV) or earlier emission standards. Fleet operators seeking to avail benefits must replace these vehicles with cleaner BS-VI-compliant or electric models. The objective is to accelerate fleet modernisation while reducing emissions from commercial transport operations across the NCR.

Different Rules for Delhi and NCR

The scheme imposes stricter requirements for vehicles registered within Delhi. Fleet operators registering buses in Delhi can avail incentives only on electric buses or BS-VI CNG-powered buses. Conventional diesel buses are not eligible under the programme within the national capital.

In the rest of the NCR, including eligible districts in Haryana, Uttar Pradesh and Rajasthan, operators can claim incentives on BS-VI diesel, CNG and electric buses, provided they are replacing BS-IV or older vehicles. The differentiated approach reflects Delhi’s tighter clean-air regulations and ongoing efforts to accelerate the adoption of cleaner public transport technologies.

Centre and States Add Incentives

The OEM discount is only one part of the incentive package. The Central Government will provide a 5 per cent interest subvention on vehicle financing and fixed monthly fuel vouchers for a period of five years.

Participating state governments will offer up to 100 per cent concession on motor vehicle tax for ten years and waive registration fees for eligible vehicles purchased under the scheme.

By combining manufacturer discounts with financing support and tax benefits, the government aims to improve replacement economics for fleet operators, many of whom have delayed vehicle upgrades because of high acquisition costs.

Published on June 19, 2026