Centre approves 11 EV manufacturers for incentives under EMPS 2024: Report
New Delhi: The Ministry of Heavy Industries has given the green light to 11 electric vehicle (EV) makers, such as Ather Energy, Bajaj Auto, Hero MotoCorp, Ola Electric, and Mahindra, to qualify for incentives as part of the newly launched Electric Mobility Promotion Scheme (EMPS) 2024.
“A total of 11 firms have been granted approval under the EMPS, with several more under consideration,” informed a senior official of the ministry to Business Standard.
The objective of the scheme is to sustain the growth in electric vehicle (EV) sales, succeeding the former Faster Adoption and Manufacturing of Electric Vehicles – II (FAME-II) scheme. With an allocation of Rs 500 crore, the new scheme started on April 1 and will run until July 31.
The government has simplified the certification process for this scheme. An official told Business Standard, "The approval process is now more efficient and expedited, ensuring a seamless experience for applicants."
“The subsidy reduction responds to the high demand. The goal is to support the industry while preparing it for a post-subsidy era, as subsidies cannot continue indefinitely,” said Heavy Industries Minister Mahendra Nath Pandey speaking to Business Standard.
Despite requests from e4W manufacturers, including Tata Motors, for an extension of FAME-II benefits, this was rejected.
In the new scheme, incentives are provided for electric two-wheelers (e2W) and electric three-wheelers (e3W), but not for electric four-wheelers (e4W) and e-buses.
The government said that existing schemes like Auto PLI and PM-eBus Sewa Scheme cater to these categories. “The Auto PLI and PM-eBus Sewa scheme already cater to e4W and buses. Currently, EMPS will focus solely on e2W and e3W categories,” Heavy Industries Minister had said.
According to government data, FAME-I supported approximately 278,000 pure EVs with total demand incentives of Rs 343 crore. FAME-II, which began in April 2019 with an outlay of Rs 10,000 crore for three years, was later extended to March 2024.
EV sales this year have seen a significant increase of over 45 percent, with EV registrations in 2023 reaching nearly 1.5 million units, a considerable rise from the previous year’s numbers of just over 1 million units.
This growth has boosted the EV penetration across categories in India to 6.3 percent from 4.8 percent in 2022, surpassing the 5 percent mark.
According to the report, EV manufacturers approved for EMPS 2024 are Ather Energy, Bajaj Auto, BGauss Auto, Ola Electric, TVS Motor, Quantum Energy, Hero MotoCorp, Hop Electric, Kinetic Green, TI Clean Mobility, Mahindra.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
