New Delhi: Volvo Eicher Commercial Vehicles (VECV) has signed a Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH) to join the Centre’s scheme for the replacement of old trucks and buses in the Delhi-NCR region.
With the signing of the agreement, Eicher Trucks and Buses, the commercial vehicle business unit of VECV, will offer 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 level applicable to an equivalent Internal Combustion Engine (ICE) vehicle in the same Gross Vehicle Weight (GVW) category, according to the agreement.
Besides the discount offered by participating original equipment manufacturers (OEMs), the Central Government will provide a 5 per cent interest subvention and fixed monthly fuel vouchers for five years to eligible beneficiaries under the scheme.
Participating state governments will provide up to 100 per cent concession on motor vehicle tax for a period of 10 years and waive registration fees for eligible beneficiaries.
With VECV joining the initiative, seven vehicle manufacturers have now signed MoUs with the government for implementation of the scheme.
The other participating OEMs are Ashok Leyland, Switch Mobility, Tata Motors, Mahindra & Mahindra, SML Mahindra and Daimler India Commercial Vehicles (DICV).
According to the government, the OEMs that have signed the agreements together account for more than 95 per cent of the trucks and buses market, providing broad industry coverage for the implementation of the vehicle replacement scheme in the Delhi-NCR region.