The electric vehicle (EV) industry, major players including Hero MotoCorp, Bajaj Auto, TVS, Ather Energy, Ola Electric Mobility, and Kinetic Green have received approvals to sell two-wheelers and claim subsidies under the newly introduced Electric Mobility Promotion Scheme (EMPS) 2024.
According to government officials familiar with the matter, these approvals enable the aforementioned companies to avail subsidies for sales made within the next four months. This move aims to alleviate any apprehensions within the industry regarding the discontinuation of financial support following the conclusion of the second phase of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME II) scheme, which expired on March 31, 2024.
The Ministry of Heavy Industries had announced the EMPS 2024, a Rs 500-crore scheme, last month as part of the government’s ongoing efforts to promote electric mobility and reduce carbon emissions. The scheme’s objective is to incentivise the adoption of EVs by providing financial support to manufacturers and consumers alike. The inclusion of renowned players such as Hero MotoCorp, Bajaj Auto, and TVS underscores the government’s commitment to fostering a conducive environment for EV manufacturers and promoting sustainable transportation solutions. Moreover, the approval of subsidies for Ather Energy, Ola Electric Mobility, and Kinetic Green reflects the growing prominence of start-ups and innovative ventures in the EV landscape. With the EMPS 2024 in place, stakeholders in the EV ecosystem can expect a renewed impetus for growth and development, as government-backed initiatives facilitate increased adoption and market penetration of electric vehicles. As India strives towards achieving its sustainability goals and reducing dependence on fossil fuels, the EMPS 2024 serves as a crucial enabler for driving the transition towards a cleaner, greener future.
An official statement said this is a fund-limited scheme for four months, from April 1 to July 31, 2024. It is for faster adoption of electric two-wheeler (E2W) and three-wheeler (E3W) to provide further impetus to the green mobility and development of electric vehicle (EV) manufacturing ecosystem in the country. This new scheme aims to support 372,000 EVs. To encourage advanced technologies, the benefits of incentives will be extended to only those vehicles that are fitted with advanced batteries, an official statement said. The move comes at a time when some EV companies are concerned about no subsidy being disbursed on sales made from April 1 onwards. Some EV makers had also threatened to shut production lines until clarity on whether they will be getting any financial support from the Centre emerges.
