Under EV Promotion Scheme, Target Sales Of Only 3.6% Achieved

SUMMARY

Of the 372,215 vehicles aimed for under EMPS, only 13,499 were sold

EMPS, with a budget of INR 500 Cr, was launched on April 1 and was formulated to run for four months, expiring on July 31

Among these categories, the highest sales were in the e2Ws segment, with 12,457 units sold, representing 3.7% of the target

Over three months after the Centre rolled out INR 500 Cr Electric Mobility Promotion Scheme (EMPS) 2024 to promote the sale of electric two- and three-wheelers, the scheme has reportedly managed to achieve only 3.6% of its targeted vehicle sales to date.

Citing data from the Ministry of Heavy Industry (MHI), Business Standard reported that of the 372,215 vehicles aimed for under EMPS, only 13,499 were sold.

EMPS, with a budget of INR 500 Cr, was launched on April 1 and was formulated to run for four months, expiring on July 31.

On the category front, the sales targets under EMPS include 333K electric two-wheelers (e2Ws), 38.8K electric three-wheelers (e3Ws), including 13.5K rickshaws and e-carts, and 25,238 L5 electric three-wheelers.

Among these categories, the highest sales were in the e2Ws segment, with 12,457 units sold, representing 3.7% of the target.

In contrast, the e-rickshaws and e-carts segment saw least success, achieving only 0.3% of its sales target. The e3Ws (L5 category) managed to reach 4% of their target.

Notably, the EMPS also reduced incentives significantly. For instance, the incentive for e2Ws went down from INR 66,000 to INR 10,000, and for e3Ws, from INR 111,500 to INR 25,000.

It’s important to note that EMPS was introduced during a period of high industry demand for incentives as the FAME II programme was approaching its expiry on March 31.

However, after the announcement of EMPS, the government extended the FAME II programme by four months with an additional allocation of INR 500 Cr.

FAME II was introduced in 2019 with an initial outlay of INR 10,000 Cr for supporting the adoption of EVs in the country. In February this year, the Finance Ministry approved an additional INR 1,500 Cr for the second phase of FAME-II.

The development comes at a time when the government is aiming to make India a manufacturing hub for EV makers with various schemes and incentives.

Notably, in March, the government also introduced a new EV policy that offers a reduced tariff on the import of EVs.

On the broader EV adoption front, the cumulative EV sales in India reached 41,35,077 units by the end of FY2024, as per a report by JMK Research and Analysis.

Just in FY24, the EV sales surpassed the 1.7 Mn mark with over 55% of the share coming from registered e2Ws, followed by passenger electric three-wheelers (E3W P) with 32% market share.