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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Tata Motors, one of India’s largest commercial vehicle manufacturers, has delivered 20 additional Tata Ace EVs to Magenta Mobility.

This builds upon the MoU signed between the two companies in 2023 to deploy 500 units of Ace EV, which currently stands at 350 units. The Tata Ace EVs are being deployed in 10 cities and have cumulatively clocked over 5 million kilometres, which translates to about 2,500 tonnes of CO2 emissions saved.

Maxson Lewis, Founder & CEO, Magenta Mobility, said, “The Tata Ace EV has consistently delivered operational excellence, high uptime, robust range, and driver-friendly performance. With 350 vehicles already integrated into our fleet and 150 more on the way, we are strengthening our green logistics footprint across India. Tata Motors’ reliable service ecosystem and proven technology make them a key partner in our journey to scale up across 16 cities and decarbonize mobility.”

Pinaki Haldar, Vice-President & Business Head – SCVPU, Tata Motors Commercial Vehicles, added, “We are proud to lead India’s e-cargo transformation by delivering innovative, practical and sustainable mobility solutions. The continued trust shown by Magenta Mobility in the Ace EV is a testament to the vehicle’s performance, reliability and the strength of our growing partnership. We are not just deploying electric vehicles, we are building the foundation for a cleaner, smarter logistics ecosystem across urban India. Each Ace EV delivered is a step forward in democratising zero-emission cargo transport and accelerating the nation’s green mobility movement.”

The Tata Ace EV comes with a certified claimed range of 161km, 1,000kg payload capacity and is powered by Tata Motors’ Fleet Edge connected vehicle platform. To date, the automaker has sold over 8,000 Tata Ace EVs, which have cumulatively accumulated more than 600 million green kilometres.

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Delhi NCR-based electric vehicle company Euler Motors has raised INR 6.38 billion in Series D round, which was led by Hero MotoCorp and British International Investment (BII). With this, the EV maker has raised around INR 14 billion to date.

The company aims to utilise the fund towards expanding its sales & service network, and advancing new product development.

At present, the company’s product portfolio includes an electric three-wheeler the HiLoad EV and StormEV, the country’s first ADAS-equipped four-wheeler Light Commercial Vehicle (LCV).

Saurav Kumar, Founder & CEO, Euler Motors, said, “We are excited to welcome Hero MotoCorp as a strategic investor in Euler Motors. This is a strong vote of confidence both in India’s commercial electric mobility future and in Euler Motors’ execution and products. With this fresh capital and strategic backing from new and existing investors, we are poised to accelerate our scale, continue innovating to deliver superior products, and come a few steps closer towards becoming India’s No. 1 commercial EV brand.”

Dr. Pawan Munjal, Executive Chairman, Hero MotoCorp, said, “The strategic investment in Euler reinforces our commitment to accelerated growth through both organic and inorganic expansion, while highlighting the power of collaboration and adaptability in an ever-evolving market. As a global automotive leader, Hero MotoCorp is driven by sustainability, innovation and customer-centric progress. As we strengthen and diversify our presence in the emerging mobility landscape, this investment allows Hero MotoCorp to venture into a rapidly growing electric three and four-wheeler market, while unlocking adjacent business opportunities and continuing to cement its leadership in the future of sustainable mobility.”

Abhinav Sinha, Managing Director and Head of Technology, Telecoms and Sustainable Industrials, British International Investment, said, “We are pleased to deepen our partnership with Euler Motors as it scales its operations and brings next-generation EVs to more people in India. Since our initial investment in 2023, Euler Motors have advanced e-mobility adoption and created better jobs. This aligns closely with our ambition to support India’s net zero emissions target and enables us to drive scalable impact in a sector vital to both economic growth and environmental progress.”

Some of the key investors at Euler Motors include Blume Ventures, Athera Partners, Asian Development Bank Ventures, and Piramal Alternatives India Access Fund.

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Daimler India Commercial Vehicles (DICV), a wholly-owned subsidiary of Daimler Truck, has reported a resilient and transformative performance in 2024,  despite a 10 percent decline in the Indian commercial vehicle market driven by macroeconomic headwinds, elections and erratic monsoons.

The company’s key performance highlights include record bus sales of 2,200 units, a 10.5 percent YoY growth and a 65.9 percent surge in bus exports. DICV’s customer service and aftermarket businesses also expanded significantly, with customer service revenue reaching INR 13 billion (up 27.8 percent) and aftermarket revenue growing 18 percent, together contributing over INR 22 billion to the company’s top line.

Satyakam Arya, MD and CEO, Daimler India Commercial Vehicles, said, “Despite numerous challenges, 2024 has been a year of resilience for us. In a time marked by geopolitical tensions and domestic elections, our entire industry faced significant tests. However, through collective strength, we have emerged stronger by focusing on what truly matters - our customers, products and people. Therefore, I am incredibly proud to share that we recorded our highest-ever bus sales, a remarkable milestone that reflects our dedication and hard work. Additionally, we expanded our aftermarket and customer service business, and took decisive actions in innovation, sustainability and transformation. Each of these achievements is the result of the strength and agility of our strategy and the exceptional team at DICV.”

Alexander Schoen, CFO, Daimler India Commercial Vehicles, said, “Despite the tough market environment in 2024, our revenue mix developed positively, driven by a 30.7 percent growth in domestic bus revenue and 58.5 percent increase in bus export revenue. With our customer service and components business collectively generating over INR 22 billion, our business fundamentals remain strong. In addition to these financial successes, we have continued to invest in advanced technologies and sustainable practices that position us for long-term, sustainable growth.”

On the sustainability front, DICV achieved 100 percent renewable power usage (Scope 2) and became the first Indian facility to meet IGBC Green Factory Building V2 standards. Operationally, the company celebrated 10 years of global supply chain contributions through its Consolidation Center, having exported over 300 million parts globally.

In 2024, DICV also expanded its BharatBenz portfolio, launching new Heavy-Duty Rigid Trucks and the TorqShift AMT tipper range, which has already made a strong impact in the mining segment.

Under its organizational transformation program, ‘The BharatBenz Way’, DICV aims to embed Total Quality Management across operations, with ambitions to win the prestigious Deming Award.

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Mumbai-headquartered electric mass mobility company GreenCell Mobility has got the Letter of Award (LoA) for supplying and deploying 472 Eicher e-buses in Madhya Pradesh under the PM E-Bus Sewa Scheme.

The company has partnered VE Commercial Vehicles (VECV) for deploying these e-buses across 6 cities in Madhya Pradesh.

GreenCell Mobility is backed by Eversource Capital, has been actively setting up charging infrastructure to support the e-bus fleet in operations in Uttar Pradesh, Gujarat and Maharashtra. These new contracts will see GreenCell Mobility expand its electric bus operations across Madhya Pradesh and Andhra Pradesh.

Devndra Chawla, MD & CEO, GreenCell Mobility, said, "GreenCell Mobility is honoured to collaborate with the governments of Andhra Pradesh and Madhya Pradesh to support the state’s transition to sustainable public transport. These projects are a major milestone in our mission to transform mass mobility through zero-emission electric buses. Backed by strategic partnerships with leading OEMs and a robust financing model, we are committed to making clean, efficient public transportation accessible throughout India's growing cities- while delivering a safe, reliable, and superior guest experience."

Vinod Aggarwal, MD & CEO, VE Commercial Vehicles, added, “We are delighted to take the next step with GreenCell Mobility by introducing Eicher electric buses in their operations under the PM E-Bus Seva Scheme. These buses are built on reliable technology and have already clocked 1.4 crore kms across India. It is a matter of pride for us that these buses will operate in the state of Madhya Pradesh which has been home to Eicher Trucks and Buses for over four decades. We thank the Government of Madhya Pradesh and GreenCell Mobility for partnering with us to introduce eco-friendly public transportation.”

The PM E-Bus Sewa Scheme is part of the Central Government's initiative to deploy 10,000 e-buses across the country and support the Government of India’s mission to electrify public transport. In FY 2024-25, CESL (Convergence Energy Services) introduced a tender for 4,588 e-buses under the PM E-Bus Sewa scheme.

Also read: EKA Mobility to deploy 750 e-buses across Andhra Pradesh

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