The Indian government recently unveiled a new scheme aimed at boosting the sales of electric two and three-wheelers across the country. Under the Electric Mobility Promotion Scheme (EMPS) 2024, a substantial allocation of Rs 500 crore has been earmarked to encourage the adoption of electric vehicles. Scheduled to be effective for four months starting from April 1, this initiative reflects the government’s steadfast commitment to promoting sustainable mobility solutions.
Replacing the existing Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME II) scheme, which concludes on March 31, 2024, the EMPS 2024 introduces several key changes. Notably, companies seeking subsidies must register under the new program, as existing registrations under FAME II will not be applicable. The new scheme offers subsidies of up to Rs 10,000 per two-wheeler, Rs 25,000 per light three-wheeler, and Rs 50,000 per heavy three-wheeler, aiming to incentivize the purchase of electric vehicles.
EMPS 2024 signifies a strategic shift in subsidy allocation, focusing on electric two and three-wheelers while omitting electric buses and four-wheelers. This move is in anticipation of a broader initiative, with plans for a third iteration of the FAME scheme (FAME III) expected post-elections to encompass additional vehicle categories. Registrations made under EMPS 2024 will remain valid for the upcoming scheme, emphasizing continuity and long-term support for electric vehicle sales in India.
