Tata Motors joins Centre's vehicle replacement scheme in Delhi-NCR, offers 8% discount

Tata Motors has joined the government's scheme to provide discounts for the replacement of old trucks and buses in Delhi-NCR, an official statement said on Thursday.

The statement said that a memorandum of understanding (MoU) under the government of India's scheme for replacement of old trucks and buses in the Delhi-NCR was signed on Thursday between the Ministry of Road Transport and Highways (MoRTH) and Tata Motors.

Under the agreement, the automaker will provide an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the scheme.

For electric vehicles, the discount shall be equal to the amount applicable to an Internal Combustion Engine (ICE) vehicle of the equivalent Gross Vehicle Weight (GVW) category, it added.

According to the statement, in addition to the 8% discount offered by participating OEMs (original equipment manufacturers), the central government will provide 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 a waiver of registration fees for eligible beneficiaries under the scheme, it added.

Earlier in the week, Ashok Leyland and Switch Mobility also signed similar pacts with the government for implementing the scheme. Together, these companies have around 50% of the market share in trucks and buses.

(Except for the headline, Fortune India has not edited the content of this PTI report.)