The central government has extended the Electric Mobility Promotion Scheme (EMPS) till September 30. With this, the government has increased the subsidy from Rs 500 crore to Rs 778 crore. The Heavy Industry Ministry had launched this scheme on March 13 to promote the sale of electric vehicles in the country.
Then this scheme was implemented from 1 April 2024 to 31 July 2024. This scheme gives subsidy on electric two wheeler, electric three wheeler and e-rickshaw. No information has been given about the inclusion of electric 4 wheelers in this.
Subsidy target for two wheelers increased to Rs 5,00,080
The government has now increased the target of giving subsidy for two wheelers in EMPS to 5,00,080, which was earlier 3.37 lakh. At the same time, the target of three-wheelers has been increased from 41,306 to 60,709 and the target of large electric three-wheelers has been increased from 25,238 to 47,119. Whereas, no change has been made in the target of electric rickshaw. The government is giving subsidy of Rs 5000 per kilowatt on different categories of electric vehicles.
Center brought FAME scheme in 2019 to promote EV
Earlier, with the aim of promoting electric vehicles, the Central Government had launched the Faster Adoption and Manufacturing of Electric Vehicles i.e. FAME scheme in 2019. Under this, subsidy is given on electric vehicles to promote them.
Rs 800 crore were allocated under FAME-1 scheme and Rs 10,000 crore were allocated for FAME-2 in 2022. After this, on February 20, 2024, the financial outlay for FAME-2 was increased from Rs 1,500 crore to Rs 11,500 crore. Under the FAME-2 scheme, the government gave subsidy to promote electric vehicles till 31 March 2024, after which the subsidy is being given under EMPS.
15.3 lakh electric vehicles sold in 2023
Demand and sales of electric vehicles have increased rapidly in the country. Especially in the two-wheeler and three-wheeler segments, more growth has been seen. Total sales of electric vehicles have reached 15.30 lakh units in 2023, which was 10.2 lakh in 2022.
In 2-3 years the price of petrol and EV two-wheeler will be equal
FADA President Manish Raj Singhania says that petrol two-wheeler manufacturers are also increasing e-two-wheeler models. Currently their stake is around 5%. It will increase manifold in 2-3 years. Prices may also come down to closer to petrol two-wheelers.
According to Rajeev Arora, founder of Altius EV-Tech, more than 40% of the cost of an e-two-wheeler is the battery. In the last 5-6 months, the prices of Chinese batteries have decreased by about 40% to 50%. With this, we have reduced the prices of the entire product range by 15%.
