Mahindra and SML Mahindra join Ashok Leyland, Switch Mobility and Tata Motors in signing MoUs with MoRTH under the old commercial vehicle replacement scheme for Delhi-NCR, covering around 75% of the trucks and buses market.
The Ministry of Road Transport and Highways (MoRTH) signed Memoranda of Understanding with Mahindra and Mahindra Ltd. and SML Mahindra on June 19, 2026 under the Government of India’s scheme for the replacement of old trucks and buses in the Delhi-NCR region. Under the agreement, the two Original Equipment Manufacturers (OEMs) will provide an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the scheme. For electric vehicles, the discount is capped at the level applicable to an Internal Combustion Engine vehicle of the equivalent Gross Vehicle Weight category. Earlier in the week, Ashok Leyland, Switch Mobility and Tata Motors had also signed MoUs with the Government for the implementation of the scheme. The five participating companies together hold a market share of around 75% in trucks and buses, providing significant coverage for the scheme’s implementation.
In addition to the 8% OEM discount, the Central Government will provide 5% interest subvention and fixed monthly fuel vouchers for a period of five years. Participating state governments will provide up to 100% concession on motor vehicle tax for a period of ten years and a waiver of registration fees for eligible beneficiaries under the scheme.
Source: Press Information Bureau (PIB)
