After Ashok Leyland, Switch Mobility and Tata Motors, now Mahindra & Mahindra Ltd and SML Mahindra have signed a Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH) under the Centre’s scheme to replace old trucks and buses in the Delhi–NCR region.
Under the agreement, participating original equipment manufacturers (OEM) will provide an eight per cent discount on the ex-showroom price of eligible trucks and buses purchased as replacements.
For electric vehicles, the discount will be capped at the level applicable to an Internal Combustion Engine (ICE) vehicle of the equivalent Gross Vehicle Weight (GVW) category.
In addition to the OEM discount, the Central Government will provide a five per cent interest subvention and fixed monthly fuel vouchers for 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 beneficiaries.
Earlier in the week, Ashok Leyland, Switch Mobility and Tata Motors have also signed MoUs with the Government for implementation of the scheme. The five participating manufacturers have a market share of around 75 per cent in trucks and buses market, which provides significant coverage for implementation of the vehicle replacement scheme in the Delhi-NCR region.
