Volvo Eicher, Force Motors, Pinnacle Mobility join Centre's Delhi-NCR vehicle replacement scheme

Volvo Eicher Commercial Vehicles (VECV), Force Motors and Pinnacle Mobility Solutions have signed a Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH), joining the Centre's vehicle replacement scheme for Delhi-NCR. Under the agreement, the three commercial vehicle manufacturers will offer an 8 per cent discount on the ex-showroom price of eligible trucks and buses purchased under the scheme.

For electric commercial vehicles, the discount will be capped at the level applicable to an equivalent Internal Combustion Engine (ICE) vehicle in the same Gross Vehicle Weight (GVW) category.

The latest signings expand the list of participating manufacturers to nine, with the government saying the OEMs together account for more than 95 per cent of the trucks and buses market, ensuring broad coverage of the scheme.

More benefits for buyers

The OEM discount will be available in addition to incentives announced by the Centre and participating states. The Central Government will provide a 5 per cent interest subvention on vehicle loans and fixed monthly fuel vouchers for five years.

Participating state governments will also offer up to 100 per cent concession on motor vehicle tax for 10 years and waive registration fees for eligible beneficiaries.

Earlier, Ashok Leyland, Switch Mobility, Tata Motors, Mahindra & Mahindra, SML Mahindra and Daimler India Commercial Vehicles (DICV) had signed similar MoUs with the government.

Scheme approved earlier this month

The latest development follows the Union Cabinet's approval of a two-year vehicle replacement scheme for Delhi-NCR aimed at reducing vehicular pollution and accelerating the adoption of cleaner commercial vehicles.

The Cabinet approved Rs 5,041 crore for the programme from a total outlay of Rs 9,585 crore. The scheme targets trucks and buses registered in Delhi-NCR that comply with **BS-IV or older emission norms, encouraging owners to replace them with BS-VI-compliant or electric vehicles.

Around 2.07 lakh vehicle owners, including 1.91 lakh trucks and 16,329 buses, are expected to benefit from the initiative.

Why the government launched the scheme

According to the government, commercial vehicles contribute disproportionately to pollution in the National Capital Region. A 2018 study by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI) found that while trucks and buses account for only 3 per cent of the vehicle fleet, they contribute 36 per cent of PM2.5 emissions.

The government estimates that a pre-BS heavy-duty vehicle emits as much pollution as 14 BS-VI vehicles, while a BS-IV vehicle emits around 2.7 times more than its BS-VI counterpart. Replacing older vehicles is therefore expected to significantly improve air quality in the region.

Incentives to encourage fleet modernisation

Under the scheme, owners of BS-III or older vehicles will have to scrap them at authorised vehicle scrapping facilities, while BS-IV vehicles can either be scrapped or sold outside NCR in non-NCAP cities before purchasing a new vehicle.

Besides the OEM discount, eligible buyers can also receive monthly fuel vouchers worth up to Rs 4,800, depending on the vehicle category. States will also waive registration fees and provide tax concessions, making the transition to cleaner commercial vehicles more affordable.

Welcoming the Cabinet's approval earlier, Tata Motors MD & CEO Girish Wagh said the initiative would help accelerate fleet modernisation and cleaner mobility in Delhi-NCR, adding that the company is well positioned to support the transition with its BS-VI and zero-emission commercial vehicle portfolio.