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).”

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German automotive major MAN Truck & Bus recently unveiled the MAN eTGM at the Transpotec Logitec trade fair in Milan, expanding its battery-electric vehicle line-up into the mid-range distribution segment.

The introduction of the 16-tonne truck establishes a uniform electric commercial vehicle portfolio ranging from 12 to 50 tonnes, bridging the gap between the lightweight eTGL and the heavy-duty eTGX and eTGS series.

The e-truck features a permissible gross weight of 16.01 tonnes (with a 16.5-tonne option) and a chassis payload capacity of approximately 10.6 tonnes. It is designed for urban and regional distribution, municipal use and construction transport, the e-truck also supports trailer operations up to a gross combination weight of 33 tonnes. Operating in the over 16-tonne category provides transport companies with road toll reductions in several European markets while assisting fleets in meeting EU CO2 emissions targets.

The eTGM utilises a modular battery-electric system derived from MAN’s heavy-duty truck platforms. It is powered by the MAN eCD210 electric drive, which produces 210 kW (285 hp) and a maximum torque of 800 Nm, paired with a MAN TipMatic 2 transmission. Operators can configure the vehicle with two to four battery packs, providing a total usable capacity of up to 320 kWh and a maximum operating range of 480 kilometres.

Friedrich Baumann, Member of the Executive Board for Sales & Customer Solutions at MAN Truck & Bus, said, "With the MAN eTGM, we are putting the ideal electric solution for inner-city and regional distribution transport on the road right now. It is the logical conclusion to our eTruck portfolio and makes MAN a true full-range supplier of battery-electric commercial vehicles."

For body assembly, the chassis includes optimised wheelbases, standardised interfaces and a mechanical power take-off shaft (mPTO) to allow the integration of conventional body designs without extensive modification. Alongside the eTGM premiere, MAN showcased its broader decarbonisation ecosystem at the trade fair, including the heavy-duty eTGX equipped with Megawatt Charging System (MCS) technology, charging consultancy services and digital fleet connectivity tools.

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Sikhar Fleet, a mobility solutions company offering Vehicle-as-a-Service (VaaS), has announced a strategic partnership with Moto Business Service India (MBSI), a subsidiary of Yamaha Motor, to establish a structured vehicle leasing ecosystem.

The collaboration combines Sikhar Fleet’s operational management with MBSI’s experience in asset management and financial services to target the shared mobility and gig economy sectors.

As part of the initial deployment, the partnership will introduce Tata Express-T CNG vehicles into the fleet to support cleaner transport technology and reduce operational costs for drivers.

Dharampal Jadoun, Co-Founder, Sikhar Fleet, said, “This partnership is focused on helping drivers earn more with clarity and stability. By offering vehicles on transparent leasing terms, low upfront cost, and fixed payment structures, drivers will know exactly what they earn and what they pay. Our aim is to improve driver take-home income by reducing hidden costs and ensuring better vehicle uptime and support. With this model, a driver can start earning quickly and grow with confidence, instead of dealing with uncertain and informal rental systems.”

Kobayashi Masaharu, CEO and Managing Director, MBSI, added, “At MBSI, we believe that sustainability is the only path to a successful future for transportation. Our partnership with Sikhar Fleet and the deployment of Tata Express-T CNG vehicles marks a significant step in this journey. This initiative isn't just about cleaner technology; it’s about improving the quality of life of people across India by providing easy access to mobility solutions and supporting meaningful employment opportunities in the communities we serve.”

The rollout intends to support the requirements of ride-hailing platforms and mobility aggregators while improving the income stability of drivers through fixed payment structures and OEM-backed support.

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In an appeal to smooth the movement of trucks and goods transportation, Bal Malkit Singh, Advisor and Former President of the All India Motor Transport Congress (AIMTC), has urged Prime Minister Narendra Modi to abolish state border check posts nationwide. The appeal cites the current geopolitical climate and global fuel uncertainties as primary reasons for removing physical barriers to logistics.

The representation notes that despite the implementation of GST and digital enforcement, states including Maharashtra, West Bengal, Karnataka and Tamil Nadu continue to operate physical check posts. Singh argues these systems cause fuel wastage, congestion and economic losses that impact industrial competitiveness and foreign exchange reserves.

The letter mentioned that in Maharashtra alone, approximately 90,000 commercial vehicles enter and exit the state daily. The report claims nearly 270,000 litres of diesel are wasted each day due to idling and queues, resulting in an estimated economic loss of INR 270 million per day. Singh suggests that nationwide losses would be significantly higher.

The appeal urges the Union Government to encourage states to move toward technology-driven enforcement systems in alignment with the National Logistics Policy.

Bal Malkit Singh, said, “Every truck standing idle at a border check post burns the nation’s fuel, weakens productivity, increases logistics costs and drains valuable foreign exchange reserves. In today’s geo-political environment, abolishing outdated border check posts is no longer merely a transport reform — it is a national economic necessity and a patriotic responsibility.”

The representation includes previous communications sent to Maharashtra Chief Minister Devendra Fadnavis regarding the removal of state-specific posts. The transport sector is seeking a reform initiative to ensure the seamless movement of goods across the country.

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Eicher Trucks and Buses, a unit of VE Commercial Vehicles (VECV), has signed a Memorandum of Understanding (MoU) with Cityflo to deploy 2,000 buses over the next three years. The agreement includes the planned deployment of 500 buses in the 2027 financial year.

As per the understanding, Eicher Trucks and Buses will provide a portfolio of vehicles, including diesel, CNG and electric models. The agreement specifically covers the Eicher Skyline Pro 3011 AC Pushback with Rear Air Suspension. The partnership focuses on delivering uptime, maintenance support and configurations tailored to urban operations, such as reduced noise, vibration and harshness (NVH) levels and enhanced climate control.

B Srinivas, MD & CEO, VECV, said, “Our partnership with Cityflo reflects a shared commitment to transforming daily urban commuting through reliable, comfortable and efficient mobility solutions at scale. By combining Eicher’s advanced buses and service ecosystem with Cityflo’s commuter-first approach, we will deliver a dependable and premium travel experience that makes everyday journeys more predictable, convenient and sustainable for passengers. The partnership aligns with the government's vision to decongest city roads and save foreign exchange on fuel imports by presenting an attractive public transport solution to cities across India.”

Rushabh Shah, Co-Founder & COO, Cityflo, added, "At Cityflo, we believe corporate commutes should be comfortable, convenient, consistent and affordable, without compromise. Our partnership with Eicher Trucks & Buses started in 2024, when we set out to understand the right bus configuration for city commutes. The result was a brand-new 27-seater vehicle, built specifically for city roads and refined to meet Cityflo's service standards. We're excited to continue building on that same spirit of collaboration as we scale."

The collaboration aims to provide an alternative to personal vehicle use to reduce road congestion. Service integration will include on-site support and maintenance schedules designed around peak-hour requirements to ensure operational reliability for passengers.

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