Ashok Leyland & Switch Mobility Become First OEMs Under Delhi-NCR Vehicle Scrappage Scheme

Key Highlights • The Ministry of Road Transport and Highways (MoRTH) has signed its first MoU under the Delhi-NCR vehicle replacement scheme with Ashok Leyland and Switch Mobility. • Eligible customers will receive an 8% discount on ex-showroom prices of qualifying trucks and buses. • For electric vehicles, the discount will be capped at the equivalent ICE vehicle discount in the same GVW category. Additional Incentives • Central Government to provide: 5% interest subvention Monthly fuel vouchers for 5 years • Participating State Governments to offer: Up to 100% motor vehicle tax concession for 10 years Waiver of registration fees Scheme Objective • Replace BS-IV and older vehicles operating in Delhi-NCR. • Encourage adoption of BS-VI and electric vehicles. • Reduce pollution and modernize commercial vehicle fleets. What It Means • Ashok Leyland gains a first-mover advantage in a potentially large fleet replacement opportunity. • Could support demand for trucks, buses, and electric commercial vehicles. • More OEM participation may expand the overall addressable market and accelerate commercial vehicle replacement. Learning Outcome Vehicle scrappage policies can stimulate demand for new vehicles while improving environmental outcomes. Companies with strong product portfolios in both conventional and electric vehicles are often well-positioned to benefit from such programs. $ASHOKLEY