India Boosts Electric Vehicle Adoption with New Scheme and FAME-II Extension

SUMMARY

India launches a new INR 500 Cr Electric Mobility Promotion Scheme (EMPS 2024) offering subsidies for electric two-wheelers and three-wheelers to boost EV adoption for the next four months.

The government extends the FAME-II scheme for four months with an additional INR 500 Cr allocation, ensuring continued subsidies for EVs purchased until March 31, 2024. This two-pronged approach aims to accelerate electric vehicle adoption and support domestic EV manufacturing.

India is taking a significant stride towards a greener future with the launch of the INR 500 Crore Electric Mobility Promotion Scheme 2024 (EMPS 2024). This new scheme, effective from April 1st, 2024, aims to accelerate the adoption of electric two-wheelers (e-2Ws) and three-wheelers (e-3Ws) across the nation.

EMPS 2024: A Four-Month Boost for Electric Vehicles

This short-term initiative offers financial incentives to make EVs more affordable for consumers. The scheme provides subsidies of:

Up to INR 10,000 per electric two-wheeler, targeting approximately 3.33 lakh purchases.

Up to INR 25,000 for small electric three-wheelers (e-rickshaws and e-carts), aiming to benefit over 41,000 vehicles.

Up to INR 50,000 for large electric three-wheelers.

Focus on Advanced Technology and Domestic Manufacturing

EMPS 2024 prioritizes cutting-edge technology by offering incentives only for EVs equipped with advanced batteries. This aligns with the government's "Atmanirbhar Bharat" initiative, promoting a self-reliant India. The scheme encourages domestic EV manufacturing through a Phased Manufacturing Programme, strengthening the local EV supply chain and potentially creating new employment opportunities.

FAME-II Gets a Temporary Reprieve

While EMPS 2024 offers a focused push for the next four months, the existing FAME-II scheme receives a temporary lifeline. The government has reportedly granted a four-month extension to FAME-II, allocating an additional INR 500 crore for continued support. This extension ensures ongoing subsidies for EVs purchased until March 31st, 2024, or until allocated funds are exhausted. The combined budget increase brings the total FAME-II allocation to INR 7,048 crore, with a significant portion dedicated to electric two-wheeler subsidies.

A Two-Pronged Approach for Greener Mobility

The combined effect of the new EMPS 2024 scheme and the FAME-II extension signifies the government's commitment to accelerating electric vehicle adoption in India. These initiatives aim to make EVs more accessible, incentivize advanced technologies, and foster a robust domestic EV manufacturing ecosystem. With these steps, India strives towards a cleaner and more sustainable transportation future.