ICRA, an independent and professional investment information and credit rating agency, has said in its latest press note that the population of medium and heavy commercial vehicles (M&HCVs), older than 15 years at around 1.1 million units as on 31 March 2024, presents a substantial scrappage opportunity, but the real scrappage could be lower considering the nature of such vehicles' use. The agency is clear, though, that even if a certain proportion of these vehicles are disposed of, it can increase demand for replacements and so increase auto sales.

ICRA estimates that in the upcoming fiscal years (FY2025 and FY2026), an additional 570,000 vehicles will surpass the 15-year age criteria. Furthermore, it presents a sizable replacement demand potential for the automobile sector, since over 900,000 government vehicles are expected to be mandatory demolished under the first phase. The agency further says that scrappage potential in other segments is limited considering the low use of two-wheelers, passenger cars and light commercial vehicles (LCVs) beyond 15 years. Only 44,803 private scrap applications and 41,432 government scrap applications (including defence/impound scrap applications) had been received by the registered vehicle scrapping facilities (RVSFs) as of 31 August 2024. Announced in March 2021 in India, the Scrappage Policy, also known as the Voluntary Vehicle Fleet Modernisation Programme, is being implemented in phases, with effect from 1 April 2023. The second phase of the strategy, which began on 1 June 2024, requires scrapping based on the vehicle's fitness rather than age, making it more optional than the first phase, which sought to force the scrapping of government vehicles older than 15 years.

India now has 117 RVSFs nationwide in terms of scrappage infrastructure, and 50–70 more are anticipated to be put into service over the course of the next four to five years. Although the majority of RVSFs are now located in metro and tier-1 areas, as public awareness of the Scrappage Policy grows and the government enforces it more strictly, additional scrappage facilities are anticipated to be established across the nation. A nationwide network of scrapping facilities operated by unorganised parties will supplement the RVSFs set up by the automakers in the process of recycling and scrapping end-of-life (ELV) vehicles.

Kinjal Shah, Senior Vice President & Co-Group Head – Corporate Ratings, ICRA, said, “The Vehicle Scrappage Policy has the potential to drive multiple benefits over the long term. While it will aid in reducing air pollution as older polluting vehicles get scrapped, it will also drive fleet modernisation programmes, in turn, supporting the auto industry volumes. ICRA also expects a considerable reduction in scrap imports and raw material costs for automotive original equipment manufacturers (OEMs) through recycling of metals under the Scrappage Policy framework. Implementation of the Vehicle Scrappage Policy, however, faces several challenges, which have slowed down its pace of implementation. The limited network of RVSFs at present, inadequate incentives, lack of awareness about this policy, particularly among private vehicle owners, and issues related to registration date criteria are a few factors that have hindered the rapid implementation of the policy. While several countries in North America and the Western European region have incentivised vehicle scrappages, mainly in the form of monetary compensations, India’s implementation of the Vehicular Scrappage Policy comprises voluntary incentives (such as discounts, road tax rebates, registration fee waivers etc.) and mandatory dis-incentives (such as mandatory fitness tests, imposition of green tax, hike in renewal fees for older vehicles etc.). As on 31 August 2024, the RVSFs had received only 44,803 private scrap applications and 41,432 government scrap applications (including defence/impound scrap applications).”

Comments (0)

ADD COMMENT

Link Copied!

Chennai-headquartered commercial vehicle major Ashok Leyland has reported its financial results for Q3 FY2026, achieving its best-ever performance for the period.

The company reported a record INR 115.34 billion in revenue, up 22 percent YoY, as compared to INR 94.79 billion for the same period last year. EBITDA margin at 13.3 percent came at INR 15.35 billion, as against 12.8 percent at INR 12.11 billion, clocking a growth of 27 percent YoY. This also marked the 12 consecutive quarter of achieving double-digit EBITDA growth.

Net profit at INR 7.96 billion, grew by 4 percent YoY, which also includes a one-time charge of INR 3.08 billion towards the new labour code.

During the quarter, the company sold 32,929 M&HCVs, up 23 percent YoY and 20,518 LCVs, up 30 percent YoY. Exports came at 4,965 units, as against 4,151 units last year. This translates to a 30 percent market share in the M&HCV segment, and 40 percent in the Bus segment.

Ashok Leyland reported net cash of INR 26.19 billion at the end of Q3 FY2026, as against INR 9.58 billion last year.

The company also recently reintroduced the all-new Hippo and Taurus product range in the tipper and tractor-trailer segments.  

Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said, “Market conditions continue to be favourable, and we are optimistic that this strength will sustain in the medium term across all our businesses, including MHCV, LCV, and Defence. Our strong and consistent growth in volumes and profitability underscores the competitiveness of our portfolio, which delivers superior performance and customer value, reinforced by deep and effective customer engagement across all segments. We are executing a structured pipeline of product introductions across conventional and alternative propulsion platforms to further strengthen our leadership in the domestic market and accelerate our expansion in international markets. Our electric vehicle arm, Switch, has a healthy order book and a well-defined product roadmap. It has started delivering buses in International markets and has achieved positive EBITDA and PAT over the first nine months.”

Shenu Agarwal, Managing Director & CEO, Ashok Leyland, added, “The GST rationalisation has not just lowered prices, but also brought a fillip to the overall freight demand, triggering fresh replacement cycle in the CV industry. With supportive macroeconomic fundamentals and improving customer sentiment, we remain confident about the medium to long-term growth prospects of the CV industry. Our strategy continues to be anchored in delivering profitable growth through sustained product premiumisation, structural cost competitiveness, wider service coverage, and continued focus to grow non-CV businesses. “

Comments (0)

ADD COMMENT

Link Copied!

PT Tata Motors Distribusi Indonesia, a subsidiary of Tata Motors, has entered into an agreement to supply 70,000 vehicles for deployment in Indonesia. The fleet will support agricultural activities, rural logistics and regional goods movement.

The order consists of 35,000 units of the Yodha pick-up and 35,000 units of the Ultra T.7 truck. These vehicles will be delivered to PT Agrinas Pangan Nusantara, an Indonesian state-owned enterprise tasked with modernising agricultural supply chains and advancing food security.

The vehicles are part of the Koperasi Desa and Kelurahan Merah Putih Project, a strategic initiative aimed at strengthening rural connectivity and economic resilience in Indonesia. The fleet will be distributed through agricultural cooperatives under a phased delivery programme to ensure integration into the national logistics network.

Asif Shamim, Director, PT Tata Motors Distribusi Indonesia, said, “This order reflects the continued acceptance of Indian commercial vehicles in international markets and the confidence of customers in their ability to operate reliably across diverse conditions. The Tata Yodha and the Ultra T.7 are designed for sustained performance, high uptime and efficient operating economics. Their deployment will support agricultural logistics in Indonesia by improving connectivity, enabling more efficient movement of goods across rural and regional networks. We remain committed to expanding the global footprint of Indian mobility solutions through vehicles and offerings that combine scale, reliability and sustained value creation for our customers.”

Comments (0)

ADD COMMENT

Link Copied!

Switch Mobility, the electric vehicle arm of the Hinduja Group, has flagged off 272 units of its EiV12 low-floor bus in New Delhi. The deployment is part of a 950-bus contract awarded under the Convergence Energy Services (CESL) tender.

The event, held at Ramlila Maidan, was led by the Chief Minister of Delhi, Rekha Gupta, alongside transport officials and representatives from the Delhi Transport Corporation (DTC). The rollout aligns with the Government of India’s targets for emission-free and accessible public transport.

The 950 e-buses will be stationed at depots across the capital, including Okhla Srinivas Puri, Grand Trunk Road, and Rajghat. Ohm Global Mobility will manage the operational deployment and maintenance of the fleet.

The vehicles are manufactured at Switch Mobility's facility in Tamil Nadu. The project aims to increase the volume of electric buses in operation in Delhi to reduce CO2 emissions and improve urban air quality.

The Switch EiV12 is designed for urban transit with a focus on accessibility and stability. It gets ultra-low entry with kneeling and tilting functions to assist boarding. Floor-mounted batteries for stability and rear-mounted ports supporting dual-gun fast charging.

It features manual/automated wheelchair ramps for passengers with special needs, seniors and parents with prams. The Switch iON system monitors 140 parameters with 80 alerts to track vehicle health and performance.

Ganesh Mani, Chief Executive Officer of Switch Mobility, said, "The flag-off of over 200 Switch EiV12 Low Floor Buses electric buses in partnership with CESL is a significant milestone in strengthening Delhi's electric public transport ecosystem. Switch Mobility is committed to collaborating with city transport authorities to deliver dependable, high-performance electric buses that can scale rapidly. Deployments like these demonstrate how electric mobility can be seamlessly integrated into urban operations while delivering tangible benefits in emissions reduction and passenger experience."

Comments (0)

ADD COMMENT

Link Copied!

GreenCell Mobility (GCM) has announced the deployment of 570 electric buses in Delhi to expand the city's zero-emission public transport. The initiative follows an USD 89 million investment round from the International Finance Corporation (IFC), British International Investment (BII) and Tata Capital.

The deployment began with a recent event at Ramlila Maidan, where 500 electric buses were introduced by the Delhi Government.

GreenCell Mobility will supply 12-metre, air-conditioned buses featuring batteries designed for Delhi's road conditions. The vehicles will operate from depots in Rajghat, Dilshad Garden and Seemapuri.

The e-buses come with an Integrated Transport Management System (ITMS), real-time vehicle tracking and internal and reversing cameras. It also is equipped with Passenger Information Systems and infrastructure for differently-abled commuters.

Beyond the capital, GreenCell Mobility is executing projects across several states including 700 buses Uttar Pradesh, 750 buses in Andhra Pradesh, 582 buses in Madhya Pradesh, 400 buses in Bihar and 50 intercity buses for MSRTC in Maharashtra.

Backed by Eversource Capital, GCM currently operates a fleet of over 1,200 electric buses supported by 270 charging stations. Following the recent funding, the company plans to scale its total fleet to over 3,700 electric buses under the National E-Bus and PM Seva E-Mobility programmes.

Devndra Chawla, MD & CEO, GreenCell Mobility, said, “Delhi’s electric bus rollout represents the next phase of India’s public transport transition from pilots to scaled, city-wide adoption. This deployment showcases how institutional capital, policy intent and operational capability can come together to deliver clean mobility at scale. Our focus is not just on adding electric buses but on building a reliable, technology-led public transport ecosystem that cities can depend on over the long term.”

Comments (0)

ADD COMMENT

Link Copied!