Staff Writer
New Delhi: Mahindra & Mahindra Ltd and SML Mahindra have signed a Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH) to participate in the Centre’s vehicle replacement scheme aimed at phasing out old trucks and buses in the Delhi-NCR region.
With the latest signings, the number of participating manufacturers under the scheme has risen to five, following earlier agreements signed by Ashok Leyland, Switch Mobility and Tata Motors.
Under the MoU, Mahindra & Mahindra and SML Mahindra will offer an 8 per cent discount on the ex-showroom price of eligible trucks and buses purchased as replacement vehicles 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 Centre will extend a 5 per cent interest subvention and provide fixed monthly fuel vouchers for a period of five years to eligible beneficiaries. Participating state governments will offer up to 100 per cent concession on motor vehicle tax for ten years and waive registration fees under the programme.
The government said the participation of the two Mahindra Group companies would strengthen the implementation of the scheme, which seeks to accelerate the replacement of ageing commercial vehicles and reduce vehicular emissions in the National Capital Region.
According to official estimates, the five participating manufacturers together account for around 75 per cent of India’s trucks and buses market, providing substantial industry coverage for the vehicle replacement initiative.
The scheme is expected to encourage fleet operators to replace older vehicles with cleaner and more efficient alternatives through a combination of manufacturer discounts and government incentives.
