The Ministry of Heavy Industries introduces the Electric Mobility Promotion Scheme 2024 (EMPS), allocating Rs. 500 crore to promote electric vehicles. Of this, Rs. 333.39 crore is earmarked for electric two-wheelers, while the rest is allocated for electric three-wheelers.
Rs. 10,000 Benefit for Electric Scooters
Under the EMPS, each electric scooter will receive a benefit of Rs. 10,000, with a total of 3,33,387 units eligible for the scheme. Effective from April 1 to July 31, the scheme aims to boost electric vehicle sales across manufacturers, dealerships, and end buyers. As the FAME II subsidy concludes this month, the EMPS provides an interim support mechanism until further government decisions on electric vehicle subsidies.
In January 2024, EV brands sold 81,343 electric two-wheeler units (26% YoY growth), followed by 81,963 units in February 2024 (24% YoY). The Electric Mobility Promotion Scheme (EMPS) could sustain this momentum in EV sales. April 2024 sales will determine its impact.
In recent months, electric two-wheeler sales surged due to manufacturers offering cheaper models and various benefit schemes amid the removal of state subsidies, leading to price hikes. Additionally, concerns over the potential elimination of the Fame-II subsidy drove sales growth. The introduction of the Electric Mobility Promotion Scheme (EMPS) aims to bolster buyer confidence, as its criteria align with existing schemes. This eliminates the need for manufacturers to modify their products for EMPS eligibility. However, it remains unclear whether EV brands must recertify their offerings to comply with the new scheme’s standards.
