Ashok Leyland First to Sign Delhi-NCR Truck Replacement MoU

Ashok Leyland and its electric-vehicle unit Switch Mobility signed the first memorandum of understanding under the Centre's scheme for replacing old trucks and buses in Delhi-NCR, the Ministry of Road Transport and Highways said Monday. The two companies are the first original-equipment manufacturers to partner with the government on the programme.

The MoU commits Ashok Leyland and Switch Mobility to an 8% discount on the ex-showroom price of eligible trucks and buses. For electric vehicles, the discount is capped at the amount that applies to an internal-combustion engine vehicle of the same gross vehicle weight category.

The central government adds a 5% interest subvention and fixed monthly fuel vouchers for five years. Participating state governments are offering up to 100% concession on motor vehicle tax for ten years and a full waiver of registration fees.

The scheme creates a near-term sales catalyst for Ashok Leyland. Fleet operators in Delhi-NCR face pressure to scrap older vehicles, and the stacked incentives reduce total cost of ownership substantially. By being first to sign, Ashok Leyland can lock in replacement orders before competing OEMs join the programme. The Ministry said more automakers are expected to sign up in coming days.