Replacing the recently concluded Faster Adoption and Manufacturing of Electric Vehicles II (FAME II) scheme, the Indian government has launched a new initiative – the Electric Mobility Promotion Scheme 2024 (EMPS 2024). This four-month program, running from April to July 2024, aims to accelerate the adoption of electric two-wheelers (e2Ws) and three-wheelers (e3Ws) nationwide.
With a budget of ₹500 crore, EMPS 2024 targets supporting the purchase of 372,215 electric vehicles. However, government officials have emphasized that only vehicles equipped with advanced batteries will qualify for the subsidies.
The scheme offers tiered incentives based on vehicle type. Two-wheeler buyers can receive up to ₹10,000, with a target of subsidizing approximately 333,000 units. For smaller e3Ws like e-rickshaws and e-carts, the subsidy climbs to ₹25,000, aiming to support 41,000 purchases. Finally, larger e3Ws are eligible for a maximum subsidy of ₹50,000.
Explaining the rationale behind the reduced subsidies compared to FAME II, the Minister for Heavy Industries highlighted the growing demand for electric vehicles. The aim is to empower the industry while transitioning towards a future without subsidies. The ₹500 crore allocation is projected to benefit around 400,000 e2Ws and e3Ws over the four-month period.
During the interim budget presented this year, Finance Minister Nirmala Sitharaman allocated ₹2,671 crore for the FAME III scheme, meaning a 44% reduction from the earlier allocated amount. However, industry experts predicts that the government will hike this amount in the full budget after the elections.
Reference- Minister for Heavy Industries website, live Mint, Economic Times, Press Information Bureau, Business Standard