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11 EV manufacturers receives government subsidy approval under EMPS scheme

The ceiling has been lowered for electric two-wheelers (e2W) to Rs 10,000 from Rs 22,500 and for electric three-wheelers (e3W) to Rs 50,000 from Rs 111,505. There will be incentives of Rs 5,000 per kilowatt-hour (kWh) for both categories.
PrashantPrashant17-Apr-24 7:11 AM
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11 EV manufacturers receives government subsidy approval under EMPS scheme

Eleven manufacturers of electric vehicles (EVs), including Ather Energy, Bajaj Auto, Hero MotoCorp, Ola Electric, and Mahindra, have been granted approval by the Ministry of Heavy Industries to earn incentives under the recently launched Electric Mobility Promotion Scheme (EMPS) 2024.


Citing a senior ministry source, Business Standard reported, "A total of 11 firms have been granted approval under the EMPS, with several more under consideration." The programme, which took the place of the earlier Faster Adoption and Manufacturing of Electric Vehicles – II (FAME-II) programme, intends to maintain the rise in EV sales. The new programme, which has been allocated Rs 500 crore, went into effect on April 1 and will run until July 31.


Manufacturers of EVs authorised for the EMPS 2024 scheme are Bajaj Auto, Ather Energy, TVS Motor, BGauss Auto, Ola Electric, Hop Electric, Quantum Energy, Hero MotoCorp, Kinetic Green, Mahindra and TI Clean Mobility.


For this plan, the government has simplified the certification procedure. According to the official, "the approval process is now more efficient and expedited, ensuring a seamless experience for applicants." EV firms had already expressed worry that they would lose out on incentives for sales made after April 1. Nonetheless, from the dates of their separate approvals, firms that have been approved will be eligible for rewards.


Manufacturer applications are still being accepted. According to officials, any candidate hoping to get incentives under the new programme would need to go through a registration process. The government has lowered the maximum subsidy ceiling in an effort to control the rising demand and ease the pressure on EV makers. The ceiling has been lowered for electric two-wheelers (e2W) to Rs 10,000 from Rs 22,500 and for electric three-wheelers (e3W) to Rs 50,000 from Rs 111,505. There will be incentives of Rs 5,000 per kilowatt-hour (kWh) for both categories.


"In response to the strong demand, subsidies have been reduced. As subsidies cannot last forever, the objective is to sustain the sector while getting it ready for a post-subsidy age,” Heavy Industries Minister Mahendra Nath Pandey said, Business Standard reported.


While there are incentives available for the e2W and e3W categories, the new programme does not provide any benefits for e-buses or electric four-wheelers (e4W). A three-year extension of FAME-II advantages to their category was requested by a number of e4W manufacturers, including the market leader Tata Motors, however this request was denied.


Officials from the government clarified that the reason e4W and e-buses aren't included in the EMPS is because these groups are already served by programmes like PM-eBus Sewa Scheme and Auto PLI. "e4W and buses are already served by the PM-eBus Sewa programme and Auto PLI. The Heavy Industries Minister has stated that EMPS will only concentrate on the e2W and e3W categories at this time.


Data from the government indicates that FAME-I provided demand incentives of Rs 343 crore, supporting over 278,000 pure EVs. FAME-II was later extended to March 2024. It started in April 2019 and has a three-year budget of Rs 10,000 crore.


This year, EV sales have increased significantly by more than 45%, overcoming the obstacles posed by legislative changes and decreases in subsidies. EV registrations increased significantly in 2023, coming close to 1.5 million, compared to little over 1 million the year before.


The overall EV penetration in India has increased to 6.3% from 4.8% in 2022, surpassing the 5% threshold thanks to this development.




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