Delhi-NCR Old Fleet Scrap Scheme - Auto Industry Reacts to Centre's Massive Vehicle Replacement Push

The Centre's newly approved truck and bus replacement scheme for Delhi-NCR has got strong backing from vehicle manufacturers and industry bodies. The scheme targets owners of BS-IV and older commercial vehicles across Delhi, Haryana, Rajasthan and Uttar Pradesh, pushing them towards BS-VI or electric alternatives. More than two lakh vehicle owners stand to benefit. People across the industry see this as a practical step — one that addresses fleet modernisation and air quality at the same time, rather than treating them as separate problems.

SIAM Says the Incentive Package Can Actually Move the Needle

As per PTI, SIAM President Shailesh Chandra called the scheme a positive development for the commercial vehicle sector. His point was straightforward — the incentive structure gives truck and bus owners a real

financial reason to make the switch to cleaner vehicles, rather than just regulatory pressure to do so. "This is a positive step towards accelerating the adoption of cleaner vehicles in Delhi NCR," Chandra said.

The package includes a 5% interest subvention on vehicle loans for five years, monthly fuel vouchers of up to Rs 4,800 depending on the vehicle category and additional support for those choosing electric commercial vehicles. State governments will also waive registration fees and offer motor vehicle tax concessions. For fleet operators who keep pushing replacement decisions because of high upfront costs, this combination directly addresses the two biggest barriers — borrowing cost and running cost.

CV Makers Welcome the Fleet Renewal Push

Major commercial vehicle manufacturers also backed the Cabinet's decision. VE Commercial Vehicles MD and CEO B. Srinivas described the programme as an important step towards fleet modernisation while tackling environmental concerns in the NCR region. He added that if it works, it could serve as a template for similar programmes in other polluted urban clusters across the country.

Tata Motors Executive Director and CEO Girish Wagh echoed that view. As reported by PTI, he said the scheme fits with the broader push to make cargo and passenger transport cleaner and more efficient, though he noted the company would go through the detailed notification before deciding how it can support the transition further.

Why the Industry Sees This as More Than Just a Pollution Fix

For manufacturers, the scheme does two things at once — it opens up a replacement cycle for ageing commercial vehicles and it accelerates the shift to BS-VI and electric models at the same time. The government's own data puts the scale of the problem in context: trucks and buses account for 36% of PM2.5 emissions from the transport sector despite making up only about 3% of the total vehicle fleet. A single pre-BS vehicle can emit as much as 14 BS-VI vehicles.

The programme has a central government outlay of Rs 5,041 crore and runs over two years, implemented through the National Capital Region Planning Board. For the auto sector, the demand opportunity is significant — 1.91 lakh trucks and over 16,000 buses potentially entering a replacement cycle within a defined window.

(With inputs from PTI)