Govt Optimistic About Meeting EV Sales Targets Under E-Mobility Scheme

Despite reduced subsidies on sales of electric vehicles and stricter localisation norms, the government is reportedly optimistic about meeting the EV sales targets set under the Electric Mobility Promotion Scheme 2024.

As per ET’s report, citing a nationwide vehicle registration data, over 2,65,000 electric two-wheelers and 1,76,000 electric three wheelers were sold in India during fiscal year 2024-25.

The EMPS scheme has come into play with an aim to boost the sales of electric vehicles and continue to support eco-friendly transportation, to cushion the lower sales traffic.

“Around 80-90% of these electric two-wheelers are expected to be eligible for subsidy under EMPS,” a senior government official was quoted as saying by the report.

Yesterday (July 16), the union minister for heavy industries and steel HD Kumaraswamy said, the Centre is working on the implementation of the third phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, but it is unlikely to be implemented in the upcoming Union Budget 2024-25.

Two-wheeler EV registrations in India dipped more than 7% to 3.46 Lakh units in Q1 FY25 from 3.72 Lakh in the corresponding quarter of last year, according to the Ministry of Road Transport and Highways’ Vahan portal.

With the outlay of INR 500 Cr, the scheme is looking to subsidise sales of 3,72,000 electric two- and three-wheelers from April 1 till July 31, as per the report. Even as electric three-wheelers have had better sales in the market, three-wheeler EVs have not been included for subsidies before now.

As per the report, vehicle makers including Hero MotoCorp, Bajaj Auto, TVS Motor, Ather Energy, Ola Electric, and Kinetic Green have received the approval to sell vehicles and claim EMPS subsidy.

Under EMPS, EV companies can get subsidies worth INR 10,000 per two-wheeler and INR 50,000 per three-wheeler sold, the report added.