Electric Mobility Promotion Scheme 2024:Govt launches ₹500 crore scheme

Electric mobility promotion scheme:The Ministry of Heavy Industries has launched the Electric Mobility Promotion Scheme 2024. It comprises a total amount of Rs. 500 crore and Rs. 333.39 crore, which has been allotted for electric two-wheelers.The remaining amount is split between commercial and personal electric three-wheelers. Speaking of electric scooters, each will benefit from Rs. 10,000, which translates to a total of 3,33,387 units being eligible for the EMPS (Electric Mobility Promotion Scheme) 2024. The EMPS is valid only from 1 April to 31 July.

The newly introduced scheme should aid in the push for EV sales to all, manufacturers, dealerships, and the end buyer. Moreover, the FAME II subsidy concludes at the end of this month, so the Electric Mobility Promotion Scheme 2024 acts as an additional timeframe before we get to know whether there is another government subsidy in place for electric vehicles in the future.

Electric Mobility Promotion Scheme 2024

The Rs 500 crore Electric Mobility Promotion Scheme 2024 shows the government’s continued thrust on vehicle electrification as it is indispensable on a long-term basis to fortify the case for an EV ecosystem, industry experts said on Thursday. Ministry of Heavy Industries has announced the new scheme to promote e-mobility in the country with an outlay of Rs 500 crore for four months beginning April 2024. The new scheme is for 2-wheelers and 3-wheelers.

For reference, the FAME II subsidy is available till 31 March or till the budget of Rs. 11,500 crore sustains. Over the past few years, numerous buyers have benefited from it as well as the state subsidies. However, the latter phased out over time.

Electric Mobility Promotion Scheme 2024 Subsidy Amount Benefits

Old Scheme nameFaster Adoption and Manufacturing of Electric Vehicles
New SchemeElectric Mobility Promotion Scheme
Electric two wheeler Subsidy10000/-
Electric Three wheeler Subsidy25000/-
Electric E-Riksha Subsidy25000/*
Large electric three-wheeler50000/-

Electric mobility promotion scheme

Electric two-wheeler sales witnessed an upswing in the past few months as manufacturers introduced cheaper variants and offered many benefit schemes to customers. EV brands resorted to this strategy as many state subsidies were removed and this resulted in prices of electric two-wheelers increasing. Another reason for the jump in sales is the fear that Fame-II subsidy will be removed completely and that could result in a price hike. 

But with the introduction of the Electric Mobility Promotion Scheme (EMPS) ideally should boost the confidence of prospective buyers as the criteria for both the schemes is the same. This means manufacturers will not be required to re-engineer their products to meet the EMPS criteria. Whether EV brands will have to recertify their products remains to be seen. Electric Two-Wheelers, Replacing FAME 2 Subsidy

Just to give our readers an e.g. of the boom in sales, EV brands sold 81,343 electric two-wheeler units in January 2024 (26% YoY growth), while February 2024 sales stood at 81,963 units (24% YoY). It’s likely that EMPS could play a crucial role in maintaining this positive run of EV sales in the future and we will have to verify the April 2024 sales to gauge its impact. 

The following table gives us a clear breakup of fund allocation and maximum number of vehicles to be supported by EMPS. :

e-2w3,33,387₹ 333.39 crore
e-3w: e-Rickshaw/ e-cart13,590 ₹ 33.97 crore
e-3w: L5 25,238 ₹ 126.19 crore
Administrative Expenses₹ 6.45 crore
Total3,72,215₹ 500.00 crore

Earlier in February 2024, the government had raised the Fame-II allocation to ₹ 11,500 crore. The Fame-II scheme was supposed to be valid till March 31, 2024, or till the time funds under this scheme were available. Fame-II scheme has been very instrumental in promoting sales of electric vehicles in India as according to data available, it’s claimed that the government has offered subsidies on 1.2 million two-wheelers, 1,41,000 three-wheelers and close to 17,000 four-wheelers.

How to Apply Online Electric Mobility Promotion Scheme 2024 For 2 Wheeler & 3 Wheeler

  • Currently, this announcement has been implemented by the government only on March 13.
  • Therefore, how to apply online for this scheme. Where to register for this scheme? At present there is no information about how the Bike, Motorcycle loan amount will be received, where the documents will have to be uploaded for subsidy etc.
  • But soon the department will publish its official website on which information about subsidy amount available on vehicles, necessary documents, online processes, etc. will be available.

Electric Mobility Promotion Scheme Important Links & Date

EMPS Start Date01 April 2024
Last date31 July 2024
Registration & Apply OnlineClick here

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