Mahindra Group Joins Vehicle Replacement Scheme in Delhi-NCR

By Amit Jangra | Published Date : June 22, 2026

Mahindra Group has joined the Delhi-NCR vehicle replacement scheme, offering discounts and benefits to encourage owners to replace old trucks and buses.

Jun 22, 2026 | 3 min read | Mahindra Commercial Vehicles

The Government of India is moving ahead with its plan to replace older commercial vehicles in the Delhi-NCR region. As part of this effort, Mahindra & Mahindra and SML Mahindra have now joined the scheme through an agreement signed with the Ministry of Road Transport and Highways.

The programme is mainly aimed at encouraging owners of old commercial vehicles to move towards newer models. Many transport operators continue to run older vehicles, but rising maintenance costs and changing regulations have made replacement a topic of discussion in the industry.

Discounts Offered Under the Scheme

Table of Contents

1. Discounts Offered Under the Scheme

2. Additional Benefits from Government

3. Wider Industry Participation

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Under the agreement, buyers purchasing eligible vehicles through the scheme will receive an 8 percent discount on the ex-showroom price. This benefit will apply to qualifying trucks and buses covered under the programme.

For electric vehicles, the discount structure will follow a different approach. The benefit will be limited to the discount applicable to a similar internal combustion engine vehicle in the same Gross Vehicle Weight category.

For many operators who still run old trucks, such incentives could make vehicle replacement a little easier. The transport sector often works on tight budgets, so even a small reduction in purchase costs can be helpful.

Additional Benefits from Government

The support is not limited to manufacturer discounts alone. The Central Government will also provide a 5 percent interest subvention along with fixed monthly fuel vouchers for five years. Participating state governments are expected to offer additional benefits. These include up to 100 percent concession on motor vehicle tax for a period of ten years and exemption from registration fees for eligible beneficiaries.

Many people in the industry feel that a combination of discounts and government support may encourage more fleet owners to replace aging vehicles with newer Mahindra trucks and other commercial vehicles available under the scheme.

Wider Industry Participation

Mahindra is not the only company taking part in this initiative. Earlier this week, other major manufacturers also signed similar agreements with the government for implementation of the programme. Together, these companies account for a large share of the trucks and buses market in India. Because of this, the scheme is expected to cover a significant part of the commercial vehicle sector.

The coming months will show how many operators decide to participate. Still, with financial benefits being offered from different sides, owners of old trucks may now have more reasons to consider upgrading their vehicles. The scheme could also help bring newer and more efficient trucks onto the roads of Delhi-NCR over time.

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Frequently Asked Questions on Commercial Vehicles

1. What is the Delhi-NCR vehicle replacement scheme?

Ans: It is a government initiative designed to encourage owners of old commercial vehicles to replace them with newer trucks and buses.

2. What discount is being offered under the scheme?

Ans: Mahindra & Mahindra and SML Mahindra will provide an 8 percent discount on the ex-showroom price of eligible vehicles.

3. What additional benefits are available for buyers?

Ans: Eligible beneficiaries can receive interest subvention, monthly fuel vouchers, motor vehicle tax concessions and registration fee waivers.

4. Which vehicles are covered under the programme?

Ans: The scheme covers eligible trucks and buses, including qualifying commercial vehicles purchased under the government programme.

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