Ashok Leyland Signs First MoU for Electric Fleet Upgrade Scheme

Ashok Leyland and its electric mobility arm Switch Mobility have signed the first Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH) under the Government of India's vehicle replacement scheme for the Delhi-NCR region, marking a key step towards accelerating the adoption of cleaner and electric commercial vehicles. With the agreement, Ashok Leyland and Switch Mobility become the first original equipment manufacturers (OEMs) to partner with the government for the implementation of the scheme. The companies will offer an 8 per cent discount on the ex-showroom price of eligible trucks and buses purchased under the programme. For EV Market For electric vehicles (EVs), the discount will be capped at the level applicable to an internal combustion engine (ICE) vehicle of the corresponding gross vehicle weight (GVW) category. In addition to the OEM discount, the Central Government will provide a 5 per cent interest subvention and fixed monthly fuel vouchers for five years. Participating state governments will offer up to 100 per cent concession on motor vehicle tax for ten years, along with a waiver of registration fees for eligible beneficiaries. The Ministry said the signing of the first MoU marks an important milestone in operationalising the scheme, which seeks to reduce vehicular pollution and modernise commercial vehicle fleets across the Delhi-NCR region. BS-IV Regime The initiative incentivises owners of trucks and buses complying with Bharat Stage-IV (BS-IV) or older emission norms and registered in Delhi-NCR to replace them with Bharat Stage-VI (BS-VI) or higher emission-compliant vehicles, including electric trucks and buses. According to the Ministry, more automobile manufacturers are expected to join the programme in the coming weeks, expanding participation and supporting wider adoption of cleaner and electric transportation technologies.