Ashok Leyland, Switch Mobility join ₹9,585cr bus replacement scheme
What's the story
Ashok Leyland and its subsidiary Switch Mobility have become the first original equipment manufacturers (OEMs) to join the Indian government's ₹9,585 crore scheme for replacing old trucks and buses in Delhi-NCR. The two companies signed a Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH), offering an 8% discount on eligible trucks and buses bought under this initiative.
Replacement
A look at the scheme
The scheme, approved by the Union Cabinet less than two weeks ago, will run for two years. It targets owners of trucks and buses registered in Delhi-NCR that meet Bharat Stage-IV or earlier emission norms. The goal is to replace over two lakh such vehicles with Bharat Stage-VI-compliant or electric ones.
Discounts
OEMs will offer an 8% discount on eligible vehicles
Under the MoU, Ashok Leyland and Switch Mobility will offer an 8% discount on the ex-showroom price of eligible trucks and buses bought under this scheme. For electric vehicles, the discount will be capped at the level applicable to an equivalent internal combustion engine vehicle in the same gross vehicle weight category.
Owner benefits
Benefits for vehicle owners
The scheme is expected to benefit around 2.07 lakh vehicle owners, including some 1.91 lakh truck owners and 16,329 bus owners. Beyond the OEM discount, the government will provide a 5% interest subvention on vehicle loans and fixed monthly fuel vouchers for five years. Participating state governments will offer up to 100% concession on motor vehicle tax for 10 years and waive registration fees for eligible beneficiaries.