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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Ashok Leyland, the Indian flagship of the Hinduja Group and the nation’s leading commercial vehicle manufacturer, has expanded its presence in Odisha with a new light commercial vehicle dealership in Rourkela. This facility represents the company’s seventh LCV outlet in the state, reinforcing a nationwide distribution network that now exceeds 945 customer touchpoints. The product range available includes BADA DOST, DOST, SAATHI, PARTNER and MiTR.

The newly appointed channel partner, SteelEx India, operates a 3S facility covering sales, service and spares at Brahmani Tarang in Vedvyas, Rourkela. Strategically positioned to serve local demand, the site features 12 quick service bays alongside modern infrastructure aimed at delivering a superior customer experience.

With this inauguration, Ashok Leyland continues to strengthen its light commercial vehicle footprint in eastern India, leveraging a robust service backbone to enhance vehicle uptime and owner support in the Rourkela region.

Viplav Shah, Head – LCV Business, Ashok Leyland, said, “Odisha has always been an important market for us, and we are excited to further strengthen our presence in this region. Our relationship with customers is built on trust, performance and shared growth. Our products are known for their superior mileage, reliability and performance with a robust network and an industry-leading service retention; we take pride in the continued confidence our customers place in us. The opening of this new dealership marks another step in our commitment to delivering world-class products and unmatched service.”

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Pune-headquartered automotive major Force Motors has announced its strongest-ever annual financial performance in FY2026, driven by significant growth in the domestic market and improved operating leverage.

The company reported a 13 percent YoY growth in revenue at INR 91.67 billion, EBITDA at INR 15.93 billion, up 39 percent YoY and a net profit of INR 12.11 billion, up 51 percent YoY.

It attributed the growth to broad-based expansion across primary vehicle platforms, maintaining its dominant position in the van segment while doubling its presence in the premium mobility sector. Force Motors continues to remain a zero-debt company, highlighting a disciplined approach to capital allocation and financial prudence.

The company reported a 20 percent growth in overall domestic wholesales compared to the previous fiscal year. Performance across key platforms includes the Traveller maintaining a consistent 70 percent market share in the core van segment. Urbania recording over 100 percent growth, established as a leader in premium shared mobility.

Trax volume grew by over 70 percent, successfully expanding the company's reach into rural and semi-urban markets. While, demand for specialised vehicles strengthened through institutional and defence portfolio, fulfilling key orders for specialised applications for the Indian Armed Forces.

The record profitability is attributed to an improved quality of earnings and a more balanced product mix. Higher volumes allowed for better absorption of fixed costs, while a focus on higher-margin premium segments, such as the Urbania, bolstered the bottom line.

Prasan Firodia, Managing Director, Force Motors, said, “We have been a segment creator since our inception, and we are now pioneering and leading the premium shared mobility segment with Urbania’s strong presence, while platforms like Traveller and Trax continue to deliver scale and reach across markets. At the same time, our engagement with institutional and defence customers reflects the depth of our engineering capabilities and our ability to deliver in demanding and ever‑evolving environments.”

“FY2025–26 marks an unprecedented year in our journey, where consistent execution across quarters has translated into our strongest-ever financial performance. This has been driven by a clear focus on the segments where we believe we can lead and also create new segments, supported by improved operating leverage and a more balanced product mix. As we look ahead, we remain focused on building the business with consistency and discipline. Staying closely aligned to customer needs, while continuing to strengthen our product, technology and innovation capabilities, will remain central to how we approach the next phase of growth,” he added.

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Euler Motors has announced a strategic partnership with Annapurna Finance to expand financing options for electric commercial vehicles (EVs), specifically targeting semi-urban and rural markets in India.

Annapurna Finance joins Euler Motors’ network of over 15 financing partners, offering customised loan solutions for the manufacturer's range of electric three-wheelers and four-wheelers.

The collaboration focuses on fleet operators, small businesses and last-mile entrepreneurs who have traditionally remained outside the mainstream lending ecosystem.

The partnership aims to leverage the unique strengths of both organisations to bridge the credit gap in the commercial EV sector. They will focus on micro-entrepreneurs and MSMEs in underserved regions where formal credit access is often limited. By using Euler Motors’ data-driven insights into vehicle performance and battery health, Annapurna Finance can perform more accurate risk assessments on EV assets.

The initiative aims to improve the unit economics for small operators by providing affordable financing that aligns with the higher uptime and lower operating costs of electric vehicles.

Rohit Gattani, VP of Growth & Vehicle Financing, Euler Motors, said, “Financing remains one of the most critical levers for EV adoption in the commercial segment, especially in markets where access to formal credit is limited. As demand scales, the real unlock lies in reaching operators who have the intent to transition but remain outside traditional lending ecosystems. Annapurna Finance brings a strong, on-ground understanding of these customer segments, particularly in semi-urban and rural markets, which will allow us to extend EV access far more meaningfully. This partnership is about going beyond availability of credit to enabling real participation in the EV economy, with stronger unit economics and more predictable earnings for small businesses and fleet operators.”

Asish Mishra, Head of Product, Annapurna Finance, said, “At Annapurna Finance, our focus has always been on expanding access to credit for segments that are often overlooked by mainstream financial systems. With EVs emerging as a viable pathway for income generation, this partnership comes at a critical time. Euler Motors’ strong product engineering and real-world performance focus give us confidence in the asset itself, which is fundamental to enabling sustainable financing. For our customers, this translates into higher vehicle uptime, better operating efficiency, and ultimately more stable and improved earnings over the long term. We see this as a meaningful step towards building both financial inclusion and clean mobility at scale.

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Tarmac, a CRH company and one of United Kingdom’s leading sustainable building materials and construction solutions business, has reported a significant decrease in road incidents and operational costs following the first 12 months of a safety technology partnership with Motormax and Geotab.

The company operates a diverse fleet of over 2,000 vehicles including trucks, vans and plant equipment, deployed a multi-camera system integrated with the MyGeotab platform.

This ‘single pane of glass’ view allows transport teams to access telematics data and high-quality video footage simultaneously, providing evidence for incident reporting and targeted driver training.

The implementation has delivered measurable improvements across safety and financial metrics including 30 percent decrease in driver-fault collisions and a 50 percent reduction in ‘pulling out’ incidents. The proportion of high and medium-risk drivers fell from 40 percent to 6.5 percent.

Tarmac claims it achieved a 30 percent YoY saving in collision repair costs, while fuel economy improved by 25 percent across the van fleet due to better driving behaviours. Speeding incidents per 1,000 miles also halved since May 2023.

The technology has streamlined collaboration with Tarmac’s insurer, AXA. By training the insurance claims team to use the system, the company has accelerated claims resolution and improved liability decisions. Based on these results, the insurer has provided a bursary that Tarmac is reinvesting into multi-camera technology for all new vehicles.

Jonathan Meddings, Fleet Risk & Compliance Manager, Tarmac, said, “The integration allows managers to view telematics data and high-quality camera footage in a single platform, accelerating decision-making and streamlining fleet operations. As a result, we have already seen significant cost savings.”

Beyond safety, the platform supports wider business functions including HMRC Compliance – accurate reporting of personal mileage usage. Improved mileage capture for lease vehicles and the optimisation of vehicle types to ensure higher-cost 4x4s are only used when necessary.

Tarmac uses the data to reward safe driving through its ‘100 Club’ initiative, which recognises drivers who maintain perfect scores over 300 miles in a month.

The integration of fleet safety data into monthly management packs has elevated road safety from a compliance task to a core operational discipline with clear accountability.

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