On Tuesday, India government announced that the Electric Mobility Promotion Scheme (EMPS) 2024, designed to advance green mobility and the development of the electric vehicle (EV) manufacturing ecosystem in India, will conclude on July 31. The scheme, which commenced on April 1 and runs for four months, has an allocated budget of Rs 500 crore.
According to the Ministry of Heavy Industries, the total payout under the demand incentive is capped at Rs 493.55 crore, supporting 3,72,215 vehicles. The Ministry emphasized that if the funds or relevant sub-components of the scheme are exhausted before the deadline, the scheme or its sub-components will be closed accordingly, and no further claims will be entertained under EMPS 2024. Claims will be incentivized on a first-come-first-serve basis.
The EVs eligible for incentives under the EMPS 2024 scheme must be manufactured and registered within the validity period of the EMPS 2024 certificate. The Ministry stated, “The subsidies for demand incentive are eligible for e-2W and e-3W sold and registered until the funds are available or the number of vehicles supported reaches the maximum number or until July 31, 2024, whichever comes first.”
CareEdge Ratings predicts that the two-wheeler industry will maintain a steady volume growth rate of around 7 to 9 percent in FY25, considering both domestic and export markets. This growth is expected to be driven by higher EV sales, bolstered by the government’s EMPS 2024.
In FY23, EV sales reached approximately 0.73 million units, accounting for 4.54 percent of total two-wheeler sales, reflecting a remarkable year-on-year growth of 188 percent.