The Union cabinet has approved a ₹9,585-crore two-year scheme to replace ageing trucks and buses in the Delhi-NCR region, as reported by The Times of India. This initiative is expected to boost vehicle scrappage activity and demand for cleaner vehicles across India. The scheme represents a significant government push to retire ageing commercial vehicles as part of India's intensified efforts to curb vehicular pollution.
According to reports from The Times of India, Tata Motors has established a comprehensive network of 11 registered vehicle scrapping facilities (RVSFs) across 10 states, excluding the southern region. The company's infrastructure positions it strategically to capitalize on the Centre's initiative to retire ageing commercial vehicles. Several of Tata Motors' facilities are located in states covered by the NCR scheme, including Delhi-NCR, Haryana, Rajasthan and Uttar Pradesh, positioning it to benefit from potential increase in scrapping volumes as vehicle owners seek access to the formal recycling ecosystem and incentives under the programme.
As reported by The Times of India, Tata Motors currently has the capacity to dismantle more than 1.9 lakh vehicles annually. The company commands more than 50% market share in the medium and heavy truck segment across the four markets covered by the NCR scheme. This substantial dismantling capacity places the company in a strong position to benefit from the government's scrappage policy, which aims to retire ageing commercial vehicles across the country.
According to The Times of India, Tata Motors operates its scrappage facilities under the Re.Wi.Re (Recycle with Respect) initiative. The company's Re.Wi.Re facilities are designed to dismantle passenger and commercial vehicles of all brands using environmentally compliant processes. The centres are equipped with specialised dismantling lines for commercial vehicles, passenger vehicles, two-wheelers and three-wheelers, alongside dedicated systems for handling tyres, batteries, fuels and other hazardous materials.
The electric vehicle boom is creating unexpected insurance cost pressures for buyers, with comprehensive premiums for EVs remaining 20-40% higher than petrol vehicles despite a 15% green discount on third-party premiums. As per industry reports, EV insurance policy issuance has surged 670% between FY25 and FY26, making EVs the fastest-growing category in the online motor insurance market. The shift is structural because lithium-ion battery packs account for 35-50% of an EV's manufacturing cost, making battery protection a critical concern for insurers and customers. Unlike petrol vehicles, EV insurance requires specialized workshops, high-voltage trained technicians, and authorized repair networks, with even minor underbody impacts triggering expensive inspection protocols due to thermal runaway risks associated with damaged battery cells.
