EMPS Subsidy Ending: EVs To Get More Expensive Soon

The Electric Mobility Promotion Scheme 2024 (EMPS), was launched by the Indian government  to boost EV sales in India. It was designed to offer a limited-time incentive of Rs 10,000 off the ex-showroom price of select electric two-wheelers. The 2024 EMPS scheme was originally scheduled to be applicable from April 1, 2024 to July 31, 2024 as an interim solution between FAME 2 and 3. However it was  later extended till September 30, with an additional budget of Rs 500 crore. 

Some of the eligible premium electric two-wheelers include the Ather 450X, Ather Rizta, Ola S1 Pro, TVS iQube, Bajaj Chetak, and Vida V1 Pro. 

Currently, the future of subsidies on EVs is unclear. However, it is speculated that FAME 3 will come into effect soon and should help future EV buyers. FAME 3 is expected to have a smaller outlay than FAME 2 (which was about Rs 11,500 crore). If the incentives are maintained at Rs 10,000 per electric vehicle, it could prove as a relief to new buyers. 

The government is working to ensure that at least 30% of all vehicles sold in the country by 2030 are electric models, as stated by H D Kumaraswamy, Union minister of Heavy Industries, at an event organised by the Society of Indian Automobile Manufacturers. 

To achieve this goal, FAME 3 may also involve an allocation of Rs 2,000 crore for the development of electric mobility infrastructure such as charging networks across the country. 

As the EMPS scheme expires on September 30, the electric vehicle community eagerly anticipates the government's next step. The introduction of FAME 3 or a new initiative is expected to further accelerate India's journey towards a sustainable mobility future, which is already gaining significant momentum.