Electric Vehicle Subsidies Extended To September 30

The Indian government has extended the Electric Mobility Promotion Scheme (EMPS) 2024, which aims to enhance green mobility and the electric vehicle (EV) manufacturing ecosystem. Initially set to end on July 31, the scheme will now continue until September 30.

The updated scheme will support 500,080 electric two-wheelers.

Launched on April 1, EMPS 2024 had a budget of Rs 500 crore, now increased to Rs 778 crore. The goal is also revised to support 560,789 EVs, up from the initial target of 372,215. The scheme primarily focuses on electric two-wheelers, with a new target of 500,080 units, an increase from 333,387 units. It also includes electric three-wheelers like rickshaws and e-karts, with Rs 769.65 crore allocated to these categories.

The maximum subsidy for electric two-wheelers is capped at Rs 10,000.

To encourage advanced technologies, subsidies will only be provided for EVs with advanced batteries. The scheme has limited funds and restricts the number of EVs supported within each category. The subsidy under EMPS 2024 is Rs 5,000 per kWh of battery capacity in an electric two-wheeler. Thus, a two-wheeler with a 2 kWh battery is eligible for a Rs 10,000 subsidy, which is also the maximum subsidy limit for electric two-wheelers.

The extension of EMPS 2024 comes amid talks of introducing the FAME III scheme, which could further boost the promotion and adoption of EVs in India. However, the 2024 Budget did not include direct subsidies or benefits for the Electric vehicle sector, leaving its ecosystem without additional financial support.