Additional benefits like interest subvention, fuel vouchers, tax cuts and registration fee waivers are expected to boost adoption.

Ashok Leyland and Switch Mobility have become the first OEMs to provide discounts under the scheme for the replacement of old trucks and buses in Delhi-NCR, an official statement said on Monday.

The first Memorandum of Understanding (MoU) under the Centre’s scheme for replacement of old trucks and buses in the Delhi-NCR region was signed on Monday between the Ministry of Road Transport and Highways (MoRTH) and Ashok Leyland, along with Switch Mobility, a subsidiary of the company.

With the signing of the MoU, the statement said, Ashok Leyland and Switch Mobility have become the first Original Equipment Manufacturers (OEMs) to partner with the government for implementation of the scheme.

"Under the agreement, the companies will provide an 8 per cent discount on the ex-showroom price of eligible trucks and buses purchased under the scheme," the statement said.

For electric vehicles, the discount will be capped at the discount applicable to an Internal Combustion Engine (ICE) vehicle of the equivalent Gross Vehicle Weight (GVW) category, it added.

In addition to the 8 per cent discount offered by participating OEMs, the Central Government will provide 5 per cent interest subvention and fixed monthly fuel vouchers for a period of five years. On the other hand, participating state governments will provide up to 100 per cent concession on motor vehicle tax for a period of ten years and waiver of registration fees for eligible beneficiaries under the scheme, as per the statement.

The official release further said that more automobile OEMs are expected to join the scheme in the coming days, enabling wider participation and greater adoption of cleaner transport technologies.

Published on June 15, 2026