loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Delhi-NCR Clean Mobility Push: Shot in arm for domestic CV Industry

ICICIdirect Research 05 Jun 2026 DISCLAIMER

Union Cabinet has approved a two-year ₹9,585 crore vehicle replacement scheme aimed at reducing air pollution in the Delhi-NCR region. The scheme targets BS-IV and older trucks and buses, encouraging owners to replace them with BS-VI and Electric Vehicles (EVs).
Under the programme, owners of BS-III and older vehicles will be required to scrap vehicles at authorized scrapping centres while BS-IV vehicles can either be scrapped or also sold outside NCR region. They are then required to replace them with BS-VI vehicles and others.
In Delhi, Light Goods Vehicles purchased under the scheme must be electric, while buses must be BS‑VI CNG or electric only. Government vehicles are excluded from the scheme. Total outlay for the scheme includes: ₹5,041 crore from the Central Government & ₹1,601 crore through tax concessions from participating states.
Incentives include, 5% interest subvention on vehicle loans for five years, Fuel vouchers worth up to ₹4,800/month depending on vehicle category, Lump-sum incentives for EV purchases or obtaining a scrappage certificate & Partnered OEMs offering 8% discount on ex-showroom prices.
States will provide: 100% waiver of registration fees for new vehicles with up to 100% road tax exemption for EVs and 50% for other eligible vehicles for up to 10 years.
The programme is expected to benefit around 2.07 lakh vehicle owners, covering 1.91 lakh trucks & 16,329 buses. This is amidst total domestic CV industry size of 10.8 lakh units, thereby acting as a shot in the arm for the industry and safeguarding replacement led healthy volume growth for the industry in the near to medium term.
This is one of the largest targeted commercial vehicle replacement programs announced in India and could materially accelerate fleet modernization in North India's biggest freight corridor.
The biggest beneficiaries are likely to be commercial vehicle manufacturers such as Tata Motors (Rating: BUY; Target: ₹ 415) & Ashok Leyland (Rating: HOLD; Target: 170)

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere