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!

Ashok Leyland, the commercial vehicle manufacturer and flagship company of the Hinduja Group, has signed a Memorandum of Understanding with Drivn, a financing and leasing provider for electric commercial vehicles. The agreement aims to offer financial solutions to customers purchasing Ashok Leyland electric vehicles.

The agreement was signed by Niruban M, Head of Alternate Energy at Ashok Leyland and Alpna Jain, CBO and Co-Founder of Drivn.

As per the understanding, Drivn will supply end-to-end financial solutions, including financing, leasing, and fleet ownership structures. The initiative seeks to lower initial capital expenditure for buyers and support the adoption of electric commercial vehicles across business sectors.

Sudip Dhali, Head of Marketing at Ashok Leyland, stated: “Ashok Leyland is delighted to partner with Drivn to offer attractive and accessible financing solutions to our EV customers. This strategic partnership will further strengthen our market presence by making our innovative range of electric commercial vehicles more accessible to businesses across the country. Backed by cutting-edge technology and delivering an industry-leading total cost of ownership, our products are designed to maximize customer profitability. We remain committed to providing best-in-class mobility solutions and an exceptional ownership experience for our customers.”

Alpna Jain added, “We are pleased to partner with Ashok Leyland to offer seamless electric vehicle financing solutions. This collaboration reinforces our commitment to supporting businesses with accessible, tailored financial solutions that simplify vehicle ownership and enable growth. We aim to make electric commercial vehicle ownership simpler, more accessible, and more rewarding for our customers.”

Ashok Leyland continues to expand its portfolio of electric trucks and buses, targeting zero-emission commercial mobility within the Indian market.

Comments (0)

ADD COMMENT

Link Copied!

TVS Vehicle Mobility Solutions (TVS VMS) has entered into electric commercial trucking through a partnership with Montra Electric, deploying a fleet of Montra Electric Rhino heavy commercial vehicles into freight operations.

As part of the initial phase, TVS VMS flagged off 57 Montra Electric Rhino 5538 EV 4x2 TT trucks in Manesar. The electric heavy commercial vehicles will operate on a primary freight route covering a 190-kilometre distance in Chhattisgarh, supported by three charging stations along the corridor. The partners are targeting to expand the deployment to more than 300 electric trucks in FY2026–27.

Jalaj Gupta, Managing Director, Montra Electric, said, "For a partner like TVS VMS, with seven decades of experience to put our electric trucks into live freight operations is exactly the validation India's logistics industry needed. This is proof that our technology is ready for commercial scale. It also reflects the depth of what we've built at Montra Electric with products engineered to address the specific operational needs of this market. Our team worked with TVS VMS to plan the operations, set up charging around their exact routes, and our telematics platform keeps optimising performance as the fleet runs. That's the difference between a truck that works on paper and a fleet that works on the road."

Navneet Sethi, CEO, Montra Electric (eM&HCV Division), said, "For years, industries built around heavy, continuous haulage, steel being a prime example, have questioned whether electric HCVs can genuinely stand up to sustained heavy-load freight, and that scepticism has shaped how slowly this sector has moved toward electrification. TVS VMS putting our Rhino trucks into live operations answers that question decisively, for us and for every heavy-load industry watching closely. This is a company with over seven decades of running conventional trucking now choosing to enter electric trucking for the first time, and choosing us to do it is validation that our platform can handle the demands of commercial-scale freight. For Montra Electric, this is a marker of how electric heavy trucking moves from possibility to standard practice in India, and we intend to lead that shift at national scale."

Madhu Raghunath, CEO, TVS VMS, said, "This strategic partnership marks a decisive step in advancing India's green logistics infrastructure. TVS Vehicle Mobility Solutions is proud to power this transition through our full-suite, end-to-end lifecycle management platform—integrating vehicle leasing, driver operations, maintenance, insurance, charging ecosystem, and connected telematics to make zero-emission fleet operations effortless and commercially viable."

Manufactured at the Montra Electric facility in Manesar, the Rhino 5538 EV tractor-trailer features a 55-tonne gross combination weight capacity. It incorporates a 282 kWh lithium iron phosphate battery paired with a permanent magnet synchronous motor delivering 280 kW peak power and 2,000 Nm torque. The vehicle offers a range of up to 198 km per charge under loaded and empty cycle conditions, and is available in fixed-battery fast-charging and battery-swapping configurations.

Comments (0)

ADD COMMENT

Link Copied!

Automotive and aerospace component manufacturer Belrise Industries has announced the acquisition of the Tipper Body Business of Hyva India, a subsidiary of JOST Werke.

The transaction carries a total purchase consideration of approximately USD 5.65 million, representing an Enterprise Value to EBITDA multiple of approximately 3.60x.

Hyva India manufactures tipping solutions used across construction, mining, defence and infrastructure sectors, supplying the top five commercial vehicle original equipment manufacturers in India. The business reported EBITDA of approximately USD 1.57 million for calendar year 2025, alongside a return on average capital employed of around 20 percent.

Through the acquisition, Belrise expands its manufacturing footprint by adding three production plants located in Pune, Jamshedpur and Bengaluru. The deal also incorporates a European commercial vehicle original equipment manufacturer into Belrise's client portfolio as part of its positioning as a Tier-0.5 supplier.

Swastid Badve, General Manager, Belrise Industries, said, “We are pleased to welcome Hyva India’s Tipper Body Business into the Belrise family. This acquisition is a strong strategic fit and complements our manufacturing and engineering strengths. It enhances our position in the commercial vehicle value chain and supports our vision of becoming a diversified, global mobility solutions provider. Belrise remains committed to ensuring a seamless transition for customers, employees, suppliers, and business partners, while investing in the future growth and development of the business.”

Comments (0)

ADD COMMENT

Link Copied!

Logistics company Flytta Green has introduced a fleet of heavy-duty electric trucks for Dalmia Cement's clinker transportation operations in Assam. The deployment is being executed in partnership with Drivn, which is providing financing and leasing options for the vehicles.

The initiative follows Flytta Green's introduction of retrofitted electric trucks for Dalmia Cement in October 2025. The company's strategy focuses on deploying new electric trucks with a gross vehicle weight of 55-tonnes and above, alongside developing charging infrastructure and exploring solar power integration for fleet operations.

The initial delivery of 15 trucks, manufactured by Montra Electric, was completed last week. An additional 45 vehicles are scheduled for delivery during August and September.

Flytta Green has received expressions of interest for approximately 1,000 heavy-duty electric trucks, with planned deployments spanning the next 18 months across the cement, mining and metals sectors. The initiative is being managed by Ashwin Dichpally, Chief Operating Officer of Flytta Green.

In collaboration with Drivn, Flytta Green plans to deploy 200 trucks during the current financial year, with financing for subsequent vehicles to be funded by international investors. Deployment operations will prioritise the North-East, East and South-East regions of India.

Comments (0)

ADD COMMENT

Link Copied!