Indian Government launched Electric Vehicle Subsidies with New Electric Mobility Promotion Scheme 2024 | Know Benefits

Key Highlights:

• New Electric Mobility Promotion Scheme 2024, valid until July 31.
• Scheme offers subsidies mainly for two and three-wheelers.
• Subsidies include Rs 5,000 per kWh for electric two-wheelers and goes up to Rs. 10,000.

The FAME II (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle) the scheme was originally formulated with a budget outlay of Rs 10,000 crore and was valid till March 31, 2024. However, the scheme was extended until March 2024. The FAME II’s budget was also enhanced last month by an additional Rs 1,500 crore.

The Ministry of Heavy Industries has unveiled a new scheme named (EMPS) Electric Mobility Promotion Scheme 2024 to continue subsidies for electric two and three-wheelers. This scheme comes with a total outlay of Rs 500 crore and is valid for four months: from April 1 to July 31.

The new scheme gives incentive to two- and three-wheelers sold post the expiry of the FAME II subsidy. The scheme has so far provided subsidies to around 1.47 million electric vehicles, including 1.30 million two-wheelers, 1.50 lakh three-wheelers and 18,794 four-wheelers.

The Electric Mobility Promotion Scheme targets 3.72 lakh electric vehicles, which includes 3.33 lakh two-wheelers and 38,828 three-wheelers. Electric two-wheelers will get a subsidy of Rs 5,000 per kilowatt-hour (kWh) with a maximum limit of Rs 10,000 per vehicle under the new scheme.

These subsidies have been instrumental in the early-stage adoption of electric vehicles in the country, particularly for two and three-wheelers.