Govt Approves 11 EV Manufacturers For Receiving Incentives Under EMPS The government has streamlined the certification process for the scheme and approval process is now more efficient and expedited, ensuring a seamless experience for applicants.
By Entrepreneur Staff •
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The Ministry of Heavy Industries has okayed 11 electric vehicle (EV) manufacturers, including Ather Energy, Bajaj Auto, Hero MotoCorp, Ola Electric, and Mahindra, to receive incentives under the recently introduced Electric Mobility Promotion Scheme (EMPS) 2024.
The scheme aims to sustain the growth in EV sales, replacing the former Faster Adoption and Manufacturing of Electric Vehicles II (FAME-II) scheme with an allocation of INR 500 crore, commenced on April 1 and will continue till July 31.
According to an official, the government has streamlined the certification process for the scheme and approval process is now more efficient and expedited, ensuring a seamless experience for applicants.
Earlier, concerns had been raised by EV companies about potentially missing out on incentives for sales made post-April 1. However, companies that have received approval will be eligible for incentives from their respective approval dates.
To manage the increasing demand and lessen the burden on EV manufacturers, the government has reduced the maximum subsidy cap. For electric two-wheelers, the cap is now INR 10,000 per vehicle, down from INR 22,500, and for electric three-wheelers, it is INR 50,000, reduced from INR 111,505. Both categories will receive incentives of INR 5,000 per kilowatt-hour (kWh).
According to government data, FAME-I supported approximately 278,000 pure EVs with total demand incentives of INR 343 crore. FAME-II, which began in April 2019 with an outlay of INR 10,000 crore for three years, was later extended to March 2024.
EV sales this year have seen a significant increase of over 45 per cent, surpassing the challenges of subsidy reductions and regulatory changes. EV registrations in 2023 nearly reached 1.5 million units, a substantial rise from the previous year's figure of just over 1 million units. This growth has propelled the overall EV penetration in India to 6.3 per cent from 4.8 per cent in 2022, exceeding the 5 per cent mark.
