Tata Motors, MoRTH sign MoU to accelerate fleet modernisation in Delhi NCR

Indian automaker Tata Motors has inked a Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH) under the vehicle replacement scheme for old trucks and buses by the Government of India. The scheme aims to accelerate the replacement of old commercial vehicles with newer, cleaner and more efficient vehicles, resulting in lower emissions, better road safety and higher operational efficiency across the region.

Tata Motors and MoRTH Agreement

As part of the agreement, Tata Motors will offer an eight per cent discount on the ex-showroom price of eligible trucks and buses purchased under the scheme. The discount is intended to encourage fleet operators and vehicle owners to transition to modern vehicles. In the case of electric commercial vehicles, the incentive will be capped at the discount applicable to an equivalent Internal Combustion Engine (ICE) vehicle within the same Gross Vehicle Weight (GVW) category.

Additionally, the scheme includes a range of financial incentives from both the Central and State Governments. Alongside the discount provided by participating original equipment manufacturers (OEMs), the Central Government will extend a five per cent interest subvention on vehicle financing. Beneficiaries will further receive fixed monthly fuel vouchers for a period of five years.

Participating State Governments will further support the programme by offering up to 100 per cent concession on motor vehicle tax for eligible vehicles for a duration of ten years. Additionally, registration fees will be waived, making the replacement process more attractive for commercial vehicle owners.

Other participants in the scheme

Earlier this week, Ashok Leyland and Switch Mobility also entered into similar agreements with the Government to support the implementation of the scheme. Collectively, Tata Motors, Ashok Leyland and Switch Mobility account for nearly half of the Indian truck and bus market.

The inclusion of major commercial vehicle manufacturers is expected to significantly strengthen the programme's reach and effectiveness, supporting the Government's broader objective of promoting cleaner, safer and more sustainable transportation across the Delhi-NCR region.

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