On 1st April 2024, India launches EMPS 2024 scheme worth Rs 500 crore to boost electric mobility sector, supporting more than 370,000 vehicles as well as generating job opportunities.
Electric vehicles (EVs) have gradually received outstanding traction in recent times as a more efficient substitute to conventional gasoline-powered cars. Basically, the electricity stored in battery runs the vehicles. Currently, India is the 3rd biggest automobile market worldwide if sales is considered. Even, India has overtaken Japan and Germany in EV sales.
In this article, we will discuss how EMPS 2024 may help in strengthening EV sector in India.
EMPS stands for Electric Mobility Promotion Scheme. This will provide incentives for purchasing electric two-wheelers and three-wheelers. EMPS 2024 aims to “Offer up to Rs 10,000 in support for each two-wheeler, with a target of aiding around 3.33 lakh two-wheelers.”
As per the scheme, “Small three-wheelers (e-rickshaws and e-carts) could enjoy up to Rs 25,000 in assistance, benefiting over 41,000 vehicles. For larger three-wheelers, financial support could soar up to Rs 50,000.”
This scheme will be applicable for four months starting from April 1 to July 31, 2024. The whole Rs 500 crore budget allocated here, is predicted to accelerate electric two-wheelers (e-2W) and three-wheelers (e-3W) sales and manufacturing. This will further promote green mobility and enhance the EV manufacturing ecosystem.
Previously, Indian government has launched Faster Adoption of Manufacturing of Electric Vehicles Scheme – II (FAME – II) and the Production Linked Incentive Scheme (PLI) for electric vehicle manufacturers. As per the previous budget, nearly INR 51.72 billion were sanctioned towards FAME-II scheme to “subsidize and promote the adoption of clean energy vehicles.”
Now, this new Rs 500 crore scheme is going to revolutionize electric mobility in Indian market.
Aligning with the government’s ‘Atmanirbhar Bharat initiative’, EMPS 2024 is predicted to grow an efficient, competitive, as well as robust EV manufacturing industry in India.
To achieve this, a Phased Manufacturing Programme (PMP) has been developed to promote domestic manufacturing units. This will increase the EV supply chain and consequently enhance substantial job opportunities.
The Interim budget, announced in February 2024, has earmarked Rs 2671.33 crore for the upcoming FAME III scheme.
Minister for Heavy industries Mahendra Nath Pandey while talking about the EMPS 2024 mentioned, “The reduction in subsidy is in response to the heightened demand. Our aim is to strengthen the industry while preparing it for a future without subsidies.”
Currently, the automotive sector is a significant contributor to nation’s economy, accounting for around 7.1 % of its GDP, which is a great employment generating sector too.
As per the Economic Survey 2023: “India's domestic electric vehicle market will see a 49 percent compound annual growth rate (CAGR) between 2022 and 2030, with 10 million annual sales by 2030. Additionally, the electric vehicle industry is projected to create around 50 million direct and indirect jobs by 2030.”
EVs have become popular due to improved battery technology, an increasing network of charging infrastructure, as well as rising customer demand globally. A collaborative push from policymakers and manufacturers has shifted the demand for a greener future. We are all expecting some new things especially for EV sector in the main budget, scheduled on July 2024.
