Tata Motors has signed a Memorandum of Understanding with the Ministry of Road Transport and Highways to participate in the Government of India's scheme for replacement of old trucks and buses in the Delhi-NCR region. Under the agreement, Tata Motors will provide an 8% discount on the ex-showroom price of eligible vehicles purchased through the scheme. For electric vehicles, the discount will be capped at the discount applicable to an Internal Combustion Engine vehicle of equivalent Gross Vehicle Weight category.
The Central Government will supplement this with a 5% interest subvention and fixed monthly fuel vouchers for a period of five years. Participating State Governments will provide up to 100% concession on motor vehicle tax for ten years and complete waiver of registration fees for eligible beneficiaries.
The scheme has already seen participation from Ashok Leyland and Switch Mobility earlier in the week. Collectively, these three companies represent approximately 50% of the market share in the trucks and buses segment, indicating significant industry participation in the government's vehicle replacement initiative.