New Delhi, June 18 (IANS) Leading heavy commercial vehicle maker Tata Motors on Thursday signed a Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways under the Centre’s scheme for the replacement of old trucks and buses in the Delhi–NCR region with new ones at discounted prices to check pollution.

Under the agreement, Tata Motors will provide an 8 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, according to a statement issued by the Ministry of Road Transport and Highways.

In addition to the 8 per cent discount offered by participating original equipment manufacturers (OEMs), the Central government will provide a 5 per cent interest subsidy and fixed monthly fuel vouchers for a period of five years. Participating state governments will provide up to 100 per cent concession on motor vehicle tax for a period of 10 years and waiver of registration fees for eligible beneficiaries under the scheme, the statement said.

Earlier this week, Ashok Leyland and its subsidiary Switch Mobility, also signed an MoU with the government for the implementation of the scheme. Together, these companies have around 50 per cent of the country’s market share in trucks and buses.

The signing of the MoUs marks an important milestone towards operationalisation of the scheme. The initiative aims to reduce vehicular pollution and support fleet modernisation in the Delhi–NCR region by incentivising owners of trucks and buses complying with Bharat Stage-IV (BS-IV) or earlier emission norms and registered in Delhi–NCR to replace such vehicles with Bharat Stage-VI (BS-VI) or stricter emission-compliant vehicles, or electric vehicles.

Tata Motors holds a dominant position in the Indian commercial vehicle market, maintaining approximately 35.5 per cent of the overall retail market share. In the heavier tonnage categories, the company is even stronger, commanding nearly 46.4 per cent of the Medium and Heavy Commercial Vehicle (M&HCV) market and up to 53.9 per cent in the heavy truck (HCV) segment.

–IANS

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