In a move to boost electric vehicle (EV) adoption, the Ministry of Heavy Industries has given the nod to 11 prominent EV manufacturers for incentives under the Electric Mobility Promotion Scheme (EMPS) 2024. Notable beneficiaries include Ather Energy, Bajaj Auto, Hero MotoCorp, Ola Electric, and Mahindra.
Replacing the earlier Faster Adoption and Manufacturing of Electric Vehicles II (FAME-II) scheme, EMPS has been allocated INR 500 crore and came into effect on April 1, slated to run until July 31.
The government has streamlined the certification and approval processes under EMPS, ensuring a smoother experience for applicants, as confirmed by an official.
Earlier concerns raised by EV companies regarding potential incentive exclusions for sales post-April 1 have been addressed. Approved companies will be eligible for incentives from their respective approval dates.
The government has trimmed the maximum subsidy cap to alleviate the burden on EV manufacturers amid rising demand. Electric two-wheelers will now receive a maximum subsidy of INR 10,000 per vehicle, down from INR 22,500, while electric three-wheelers will receive INR 50,000, down from INR 111,505. Additionally, both categories will benefit from incentives of INR 5,000 per kilowatt-hour (kWh).
Government data indicates that FAME-I supported approximately 278,000 pure EVs with total demand incentives of INR 343 crore. FAME-II, initiated in April 2019 with an initial allocation of INR 10,000 crore for three years, was extended until March 2024.
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Despite subsidy reductions and regulatory changes, EV sales have surged by over 45 per cent this year. Registrations in 2023 nearly hit 1.5 million units, marking a significant uptick from just over 1 million units in the previous year. This growth has propelled India’s overall EV penetration to 6.3 per cent from 4.8 per cent in 2022, surpassing the 5 per cent milestone.