New Delhi, July 17, 2024 — Despite reduced subsidies and stricter localization norms, the Indian government remains optimistic about achieving its electric vehicle (EV) sales targets set under the Electric Mobility Promotion Scheme (EMPS) 2024. This determination comes in the face of recent challenges in the EV sector, as highlighted by recent data and government statements.
According to a report by Economic Times (ET), citing nationwide vehicle registration data, India witnessed significant sales of electric vehicles in the fiscal year 2024-25. Specifically, over 2,65,000 electric two-wheelers and 1,76,000 electric three-wheelers were sold, showcasing a growing acceptance of eco-friendly transportation options.
The EMPS scheme, pivotal in boosting EV sales and supporting sustainable mobility, continues to play a crucial role despite adjustments in subsidies. A senior government official, quoted in the ET report, indicated that approximately 80-90% of electric two-wheelers sold are expected to qualify for subsidies under EMPS, underscoring the scheme’s relevance and impact.
Union Minister for Heavy Industries and Steel, HD Kumaraswamy, addressed ongoing initiatives, including the upcoming third phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. However, the implementation of this phase is not anticipated in the upcoming Union Budget for 2024-25, signaling a focus on current schemes like EMPS to drive immediate outcomes.
Recent figures from the Ministry of Road Transport and Highways’ Vahan portal reveal a slight decline in two-wheeler EV registrations, down by more than 7% in the first quarter of FY25 compared to the same period last year. Despite this, the government remains committed to its targets, buoyed by an allocation of INR 500 crore to subsidize the sale of 3,72,000 electric two- and three-wheelers from April 1 to July 31.
Notably, electric three-wheelers, which have shown stronger market performance, were previously not eligible for subsidies but are now included under EMPS. Leading vehicle manufacturers such as Hero MotoCorp, Bajaj Auto, TVS Motor, Ather Energy, Ola Electric, and Kinetic Green have received approvals to sell vehicles under EMPS, enabling them to benefit from subsidies aimed at incentivizing EV adoption.
Under EMPS, eligible EV companies can receive subsidies of INR 10,000 per two-wheeler and INR 50,000 per three-wheeler sold, as reported. This financial support aims to mitigate the initial cost barriers associated with electric vehicle purchases and promote cleaner mobility solutions nationwide.
As the government navigates through policy adjustments and market dynamics, the focus remains steadfast on accelerating India’s transition towards sustainable transportation while ensuring economic feasibility and environmental benefits.
