Tata Motors Joins Government Scheme For Truck And Bus Replacement

24 Jun 2026 CW Team

On 18 June 2026 the Ministry of Road Transport and Highways (MoRTH) and Tata Motors signed a memorandum of understanding under the Government of India scheme for replacement of old trucks and buses in the Delhi–NCR region. The agreement formalises Tata Motors' participation in the central programme that seeks to accelerate fleet renewal and improve air quality in the national capital region. The signing was recorded in a press release from the ministry.

Under the terms the original equipment manufacturer (OEM) will provide an eight 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 discount applicable to an internal combustion engine (ICE) vehicle of the equivalent Gross Vehicle Weight (GVW) category. Eligible purchasers will therefore benefit from manufacturer discounts that align with prevailing vehicle class categories.

In addition to manufacturer discounts the Central Government will provide a five per cent interest subvention and fixed monthly fuel vouchers for a period of five years. Participating State Governments will grant up to 100 per cent concession on motor vehicle tax for a period of 10 years and will waive registration fees for eligible beneficiaries under the scheme. Together these provisions are designed to reduce total cost of ownership and to incentivise replacement of older vehicles.

Earlier in the week Ashok Leyland and Switch Mobility signed memoranda of understanding with the Government to participate in scheme implementation. Together these companies account for around 50 per cent of the market share in trucks and buses and will therefore play a major role in rollout across the region. The ministry statement indicated that coordinated action by manufacturers and governments is intended to support cleaner urban mobility in Delhi–NCR.

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