The Electric Mobility Promotion Scheme (EMPS) 2024, a policy initiated by the Indian government, will end on July 31. This scheme, launched in April with a financial allocation of ₹500 crore, aimed to boost the adoption of electric vehicles (EVs) in India.
Intended to boost the EV manufacturing industry, the scheme has set aside ₹493.55 crore for incentives, benefiting 372,215 vehicles. However, MHI stated that the program or its parts could end before July 31 if the available funds run out. The claims are based on the first-come, first-service.
The financial assistance covers electric two-wheelers and three-wheelers. Among the EV manufacturers approved to sell their vehicles and access the EMPS subsidy are Hero MotoCorp, Bajaj Auto, TVS Motor, Ather Energy, Ola Electric, and Kinetic Green.
The scheme offers EV firms subsidies of ₹10,000 for each two-wheeler, Rs. 25,000 for each small three-wheeler, and ₹50,000 for each large three-wheeler sold.
EV Sales Growth Estimate
The two-wheeler sector is hopeful for a stable growth rate of 7-9 percent in the upcoming fiscal year (FY25). With the support of the EMPS 2024, the rising electric vehicle sales will likely propel the expected growth.
The electric vehicle sector experienced significant growth in FY23, with sales hitting 730,000 units, representing 4.54 percent of the overall two-wheeler market. Notably, this reflects an exceptional year-over-year rise of 188 percent.
For instance, Ola Electric dominated the Indian e2w market. It registered a staggering 107% year-on-year growth in June 2024 compared to the same month of the previous year. Moreover, the company registered over 2.28 lakh units in 2024.
Introduction of FAME 3 Scheme?
The Indian government launched EMPS to maintain the promotion of clean energy vehicles after the end of the FAME II subsidy program on March 31, 2024.
Yesterday, many industry players expected the introduction of a new scheme in the Union Budget 2024-25 to boost EV sales. However, the finance minister, Nirmala Sitharaman, did not mention FAME 3 or the auto industry in her budget speech. Nevertheless, according to budget projections, the allocation for FAME in FY25 is ₹2,671.33 crore, down from ₹5,171.97 crore allocated in FY24 budget estimates.
