Ashok Leyland Signs MoU for Old Truck & Bus Replacement in Delhi-NCR; to Offer 8% Discount

• Ashok Leyland and Switch Mobility became the first OEMs to join the government’s old truck and bus replacement scheme

• They will offer an 8% discount on the ex-showroom price of eligible trucks and buses

• The scheme also includes 5% interest subvention, fuel vouchers and tax concessions for beneficiaries

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% 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% discount offered by participating OEMs, the Central Government will provide 5% 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% 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.