THEBUSINESSBYTES
BUREAU
NEW
DELHI, JUNE 18, 2026
In a significant
boost to the Government of India’s ambitious vehicle modernisation initiative
in the Delhi-NCR region, Tata Motors on Thursday signed a Memorandum of Understanding
(MoU) with the Ministry of Road Transport and Highways (MoRTH) to facilitate
the replacement of old and polluting trucks and buses with cleaner, more
efficient vehicles.
Under the agreement,
Tata Motors will offer an 8 per cent discount on the ex-showroom price of
eligible trucks and buses purchased under the scheme. For electric vehicles,
the discount will be capped at the level applicable to an Internal Combustion
Engine (ICE) vehicle in the corresponding Gross Vehicle Weight (GVW) category.
The partnership marks
another major step in the Government’s efforts to accelerate fleet
modernisation, improve air quality and promote the adoption of cleaner
transport solutions across the National Capital Region. The scheme is designed
to encourage operators to retire ageing commercial vehicles and replace them
with modern, fuel-efficient and environmentally friendly alternatives.
Apart from the 8 per cent discount being extended by participating vehicle manufacturers, the Central Government will provide a 5 per cent interest subvention along with fixed monthly fuel vouchers for five years. Participating State Governments will further support beneficiaries by offering up to 100 per cent concession on motor vehicle tax for a period of ten years and waiving registration fees for eligible vehicles under the scheme.
The inclusion of Tata Motors, one of India’s leading commercial vehicle manufacturers, is expected to significantly enhance the reach and effectiveness of the programme. Earlier this week, Ashok Leyland and Switch Mobility had also signed similar MoUs with the Government for implementation of the initiative. Collectively, these manufacturers account for nearly 50 per cent of India’s truck and bus market, underscoring strong industry support for the vehicle replacement programme.
