Govt Extends Subsidy on Electric Two- and Three-Wheelers Till September 30

The Electric Mobility Promotion Scheme (EMPS) 2024 has been extended by two months, to September 30, 2024, according to a statement released by the Ministry of Heavy Industries (MHI). If the FAME III subsidy system is not implemented, the EMPS extension is more likely to serve as a temporary solution. While the original outlay stated in March was Rs 500 crore from April 1 to July 31, 2024, the government has now increased the subsidy to Rs 778 crore for electric two- and three-wheelers. Additionally, the scheme's objective has been revised to facilitate the purchase of about 5.61 lakh electric vehicles (EVs), up from the initial target of roughly 3.72 lakh units.

Also Read: No FASTag on Windshield? Here’s How Much Penalty You Might Have to Pay

Govt Extends EMPS Subsidy by 2 Months

According to the government's announcement, the new scheme aims to give the general public access to reasonably priced and environmentally friendly transportation options. The electric two-wheeler plan will be accessible for both private and commercial usage, and the electric three-wheeler subsidy will only be granted if the vehicle is registered for commercial use.

The EMPS 2024 subsidy provides an incentive of Rs 5,000 per kWh of battery capacity, up to Rs 10,000. Thus, an electric two-wheeler with a 2kWh battery qualifies for a Rs 10,000 incentive. The government further stressed that the incentives will only be available for EVs with advanced batteries and will be limited to the quantities specified in each category. The initiative seeks to assist over 5.61 lakh electric vehicles, including more than 5 lakh electric two-wheelers and 60,709 electric three-wheelers. The latter comprises 13,590 e-rickshaws and e-carts, as well as 47,119 electric three-wheelers in the L5 category.

Also Read: Google Maps Gets Six New Features in India; Flyover Alert, Metro Ticket Booking and More Added

No Announcements Regarding FAME III Subsidy

The announcement of FAME III (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) has sparked intense debates. The initiative, which may hasten the promotion and uptake of electric vehicles in India, is being discussed in conjunction with the extension of the EMPS 2024. However, there were no concrete announcements in the 2024 Budget about subsidies or other incentives to support the electric vehicle (EV) ecosystem for the Indian market. Nevertheless, the government has lowered import duties on 25 essential minerals, which is anticipated to increase domestic battery production and eventually reduce the cost of electric vehicles.

Both newcomers to the Indian EV market, like Ola Electric and Ather, as well as established competitors, like Hero MotoCorp and Bajaj Auto are stepping up their game in the electric two-wheeler sector. The sector expects to overcome recent challenges with the government's increased assistance through EMPS 2024.