To promote the use of electric vehicles in India, the government has taken several significant steps. Recently, it decided to extend the subsidies for electric two-wheelers and three-wheelers and advance the Electric Mobility Promotion Scheme 2024 (EMPS 2024).
In this article, let’s dive deep into what the EMPS 2024 scheme is, its revised goals, and the opportunities it offers to investors in this sector.
What’s Happening?
According to a statement issued by the Ministry of Heavy Industries on July 26, 2024, the Electric Mobility Promotion Scheme 2024 (EMPS 2024) has been extended until September 30. This means you still have time to avail subsidies on the purchase of electric two-wheelers or three-wheelers.
Under this scheme, you can get a subsidy of up to Rs 10,000 on electric two-wheelers, up to Rs 25,000 on small electric three-wheelers, and up to Rs 50,000 on large electric three-wheelers. The government’s goal is to make electric vehicles affordable for the common man and promote the manufacturing of electric vehicles in the country.
What is the Electric Mobility Promotion Scheme (EMPS) 2024?
The Electric Mobility Promotion Scheme (EMPS) 2024 is a major initiative launched by the government in March 2024 to encourage the use and manufacture of electric vehicles, replacing the old FAME subsidy scheme. The scheme aims to increase the number of electric vehicles in the country and reduce pollution. Consumers receive subsidies, and manufacturers receive financial assistance.
Initially, the scheme was launched from April to July with a budget of Rs 500 crore. Now, it has been extended until September 2024, with the budget increased to Rs 778 crore.
What’s in it for Investors?
The Indian government aims to make 30% of vehicles electric by 2030. According to IBEF, the global EV industry is expected to grow from $255.54 billion in 2023 to approximately $2,108.80 billion by 2033, growing at a CAGR of 23.42% from 2024 to 2033.
The Indian EV industry is expected to grow at a CAGR of 66.52% from 2022 to 2029.
According to Fortune Business Insights, the Indian EV industry is projected to grow from $3.21 billion in 2022 to $113.99 billion by 2029.
Additionally, according to an Economic Times report, companies like Ather Energy, Bajaj Auto, Ola Electric, Hero MotoCorp, TVS, and Kinetic Green are among those approved to claim the EMPS subsidy.
What’s Next?
Electric vehicle sales in India are rapidly increasing. This fiscal year (FY25), electric car sales are expected to reach 1,50,000 units. The popularity of electric two-wheelers is also skyrocketing. Last fiscal year (FY24), their sales reached 17,52,406 units. These figures show a bright future for electric vehicles in India.
Under the EMPS 2024 scheme, the goal is to support a total of 5,60,789 electric vehicles, including 5,00,080 electric two-wheelers and 60,709 electric three-wheelers.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The companies mentioned in the article are for information purposes only. This is not investment advice.
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