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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Eicher Trucks & Buses, a unit of VE Commercial Vehicles Ltd (VECV), has inaugurated a dedicated dealership for its Eicher Pro X small truck range in Faridabad. Operated by Shree Motors, the 12,000 sqft 3S facility integrates sales, service and spares under one roof.

The facility situated on NH-19 (Delhi–Mathura–Agra corridor) provides access to fleet operators in Northern India's industrial and logistics hubs. The dealership is part of Eicher's ‘born-digital’ network, featuring an omni-channel retail model. Interactive digital displays and a dedicated customisation zone allow customers to configure vehicles according to specific requirements:

• Technical Specifications: Load deck options and cargo body requirements.
• Fuel and Aesthetics: Choice of fuel types and exterior colours.
• Connectivity: Access to Eicher’s 100 percent connected vehicle data and uptime support.

The infrastructure is designed to support last-mile logistics by focusing on vehicle uptime through trained technicians and advanced diagnostic tools.

Ramesh Rajagopalan, EVP, Customer Service, Retail Excellence and Network Development, VECV, said, “Faridabad holds strategic importance as a prominent industrial and logistics hub in North India, supporting diverse sectors such as e-commerce, parcel and courier services, FMCG distribution, and industrial goods movement. With the addition of Shree Motors Private Limited’s exclusive Eicher Pro X dealership, we are strengthening our footprint in the region while enhancing our capability to serve businesses that depend on efficient last-mile transportation. We are delighted to onboard the Shree Motors team into the Eicher Pro X network and remain committed to delivering intelligent, connected, and customer-focused mobility solutions to our customers across Faridabad and nearby markets.”

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Daimler Buses has reached a production milestone with the 40,000th Mercedes-Benz Tourismo rolling off the assembly line in early 2026. The high-deck coach, which debuted in 1992, remains a high-volume model within the European touring sector.

The Tourismo has transitioned through three generations, expanding from a single 12-metre variant to a range of models between 12 and 14 metres in length.

• First Generation (1992): Launched as the O 340 and later the O 350, it established a position in the business-class coach segment.
• Second Generation (2006): Introduced two- and three-axle variants and integrated the Electronic Stability Program (ESP). By 2015, the model surpassed 10,000 sales and added Lane Assist and emergency braking systems.
• Third Generation (2017–Present): Focused on aerodynamic efficiency, achieving a drag coefficient of cw = 0.33. This generation introduced Active Brake Assist 4 and Sideguard Assist.

The current iteration, highlighted by the 2023 Safety Coach upgrade, includes several technical advancements aimed at operational efficiency and passenger protection. It features Active Brake Assist 6 Plus, MirrorCam, Frontguard Assist and Attention Assist.

The bus now features an automatic body-lowering function that drops the chassis by 20 mm at 79 kmph to improve fuel economy. Maintenance is supported by the Omniplus digital platform, which includes an eShop for parts and 3D-printed components produced locally to reduce the CO2 footprint.

Mirko Sgodda, Head of Marketing, Sales and Customer Services at Daimler Buses, said, “Across all three generations of the high-deck coach, Daimler Buses has consistently further developed and refined the Mercedes-Benz Tourismo concept. We have always kept our customers, bus drivers and passengers in mind. This applies to efficiency, comfort, design and, of course, exemplary active and passive safety. This is the only way the Tourismo could become Europe’s best-selling touring coach.”

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TVS Motor Company has announced the launch of ‘TVS KING Ka Vaada 3.0’, an expanded value-added scheme for its three-wheeler portfolio. The initiative extends beyond vehicle maintenance to include financial security and protection benefits for customers and their families.

The updated programme introduces personal and family protection measures alongside traditional vehicle support.

Personal accident coverage for up to INR 1 million in the event of death or permanent disability. Education support of INR 100,000 per child for up to two children in the event of death or permanent disability. Hospitalisation income of INR 4,000 per day for up to 30 days during medical confinement. Three free services and roadside assistance across the range.

The scheme applies to both Internal Combustion Engine (ICE) and Electric Vehicle (EV) models in the passenger and cargo segments.

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In what is seen as a global energy crisis on the back of the ongoing war between Iran and USA-Israel, is now also expected to have an impact on the Indian transport sector.

Bal Malkit Singh, Advisor & Former President – All India Motor Transport Congress (AIMTC), has called for proactive government measures to protect the economy and the road transport sector from the effects of escalating tensions in the Middle East. The warning follows a surge in crude oil prices to nearly USD 95 per barrel and the effective closure of the Strait of Hormuz as of late February 2026.

The road transport sector is experiencing a slowdown due to reduced industrial output. Industry observations indicate a decline of up to 50 percent in certain segments, with projections suggesting this could reach 70–80 percent if current disruptions persist.

Furthermore, it can also lead to rising prices for fuel, lubricants, tyres and AdBlue (urea). He has expressed concerns over driver migration due to fewer work opportunities and the closure or price increases at highway eateries.

The ‘energy war’ scenario is impacting the wider MSME ecosystem, leading to higher production costs and operational challenges for small businesses and trading establishments.

Singh has urged the government to implement policy support to maintain economic stability, emphasising that the transport sector serves as the lifeline for domestic trade.

Proposed interventions include:

• Deferment of Equated Monthly Instalments (EMIs).
• Introduction of soft loan schemes.
• Targeted tax relaxations for transporters and MSMEs.

Bal Malkit Singh, said, “The current geo-political developments are an early warning signal for our economy. The road transport sector, being the lifeline of trade and commerce, is already experiencing stress due to reduced movement and rising operational costs. If timely interventions are not considered, the situation could escalate significantly in the coming weeks. It is essential to support MSMEs and transporters through relief measures such as deferment of EMIs, soft loan schemes, and tax relaxations to ensure business continuity and economic stability.”

Image credit: Samuel Wolfl/Pexels

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