What is the Electric Mobility Promotion Scheme 2024?
To promote a further push for electric mobility, the government of India rolled out the Electric Mobility Promotion Scheme 2024 (EMPS 2024). This new scheme starts on April 1, 2024, and ends on July 31, 2024. The government of India and the ministry of heavy industries, with the consent of the ministry of finance and the department of expenditure, introduced the Electric Mobility Promotion Scheme 2024 (EMPS 2024) for a period of four months.
The adoption of electric vehicles represents a prominent step towards achieving sustainable mobility and lessening the environmental impact of transportation worldwide. Moreover, the Electric Mobility Promotion Scheme 2024 (EMPS 2024) provides further impetus for green vision and the fastest adoption of electric vehicles.
While facing challenges such as infrastructure gaps and customer awareness, the Electric Mobility Promotion Scheme 2024 is undeniably a catalyst for accelerating the adoption of electric vehicles in India. Ongoing updates of the Electric Mobility Promotion Scheme 2024 aim to address these challenges and additionally promote sustainable mobility solutions.
Purpose of the Electric Mobility Promotion Scheme 2024
The purpose of initiating this scheme is to enhance the adoption of electric vehicles. This extended Fame II scheme focuses on making electric vehicles more affordable. It supports local manufacturing and contributes to environmental sustainability.
With an initial budget of Rs. 500 crore, the Electric Mobility Promotion Scheme 2024 provides subsidies to electric vehicles. It provides subsidies up to Rs. 10,000 for two-wheelers. Moreover, it offers up to Rs. 25,000 on the purchase of smaller three-wheelers and up to Rs. 50,000 for larger three-wheelers. It directly profits consumers, as the subsidy amount is deducted from the final invoice and reduces the price of EVs.
The Electric Mobility Promotion Scheme 2024 aims to create an effective and competitive electric manufacturing market. A transition towards green mobility is helpful to support the electric vehicle industry. It impels the development of battery technologies for electric vehicles.
Electric Mobility Promotion Scheme 2024: Subsidy – Applicable EV Categories
- With an emphasis on making electric vehicles economical and eco-friendly transportation for large people, the Electric Mobility Promotion Scheme 2024 (EMPS 2024) is eligible for electric two-wheelers and three-wheelers (registered e-carts and e-rickshaws). They must be registered for commercial purposes. Moreover, besides commercial uses, privately owned and corporate-purpose electric two-wheelers will also be applicable under the Electric Mobility Promotion Scheme 2024 (EMPS2024).
- All electric two-wheelers and three-wheelers should be registered under the Central Motor Vehicles Rules, 1989.
- Electric vehicles must have an advanced battery system.
Under Electric Mobility Promotion Scheme 2024 (EMPS 2024), the Ministry of Heavy Industry rolled out a phased manufacturing program to strengthen domestic manufacturing and the EV supply chain.
Significance of Promoting Electric Mobility
Promoting electric mobility is essential for transitioning towards sustainable transportation systems that reduce environmental impact, enhance energy security, foster technological innovation, and create economic opportunities. Promoting electric mobility involves the widespread adoption of electric vehicles. Its significance includes:
- Energy Efficient
- Reduction in Emissions
- Improves the Quality of Life
- Save Fuel
- Opportunities for Economic Growth
1. Energy Efficient
Promoting electric mobility is significant, as EVs are more energy efficient than traditional vehicles. This efficiency contributes to reducing overall energy consumption and dependence on fossil fuels.
2. Reduction in Emissions
Promoting electric mobility helps mitigate climate change and improve air quality.
3. Improves the Quality of Life
Promoting electric mobility reduces noise pollution and improves the quality of life for residents, especially in urban areas.
4. Save Fuel
Electricity is generally cheaper than fuel. It enables us to save more fuel and reduce our dependency on it. EVs have fewer moving parts and require less maintenance.
5. Opportunities for Economic Growth
The shift towards electric mobility presents opportunities for economic growth, particularly in manufacturing electric vehicles, battery production, and charging infrastructure deployment. The technical innovation in batteries, electric motors, and charging infrastructure improves the performance of EVs.
The Electric Mobility Promotion Scheme 2024 supports Atmanirbhar Bharat Abhiyan, which encourages domestic manufacturing in the EV sector. It also presents opportunities for new jobs across the country.
Timeline for the Manufacturing of Electric Vehicles
The Electric Mobility Promotion Scheme 2024 starts on April 1, 2024, and works until July 31, 2024. To get subsidies on the electric vehicles, they should be registered and manufactured until July 31, 2024.
Benefits of the Electric Mobility Promotion Scheme 2024
This scheme encourages the adoption of electric vehicles. Here are the multiple advantages of the Electric Mobility Promotion Scheme 2024:
- Promotion of EV adoption
- Propelling EV Sales
- Boost to Domestic Production
- Creates a Competitive Market
- Develops Job Opportunities
1. Promotion of EV Adoption
It promotes the development of EV batteries and electric motors to enhance their productivity. Finally, it increases the adoption of electric vehicles.
2. Propelling EV Sales
It aims to propel EV sales to boost growth in electric mobility. This scheme reduces the cost of electric vehicles. It focuses on maintaining the stimulus sales of recent months.
3. Boost to Domestic Production
The scheme incentivizes domestic manufacturing of electric vehicles and their components. It supports local industries and encourages investment in manufacturing EV technologies.
4. Creates a Competitive Market
It creates an efficient and competitive electric vehicle manufacturing industry in India. The competition drives improvements in vehicle performance, affordability, and user experience.
5. Develops Job Opportunities
It develops prominent job opportunities and contributes to economic growth in the electric mobility sector.
Difference Between Electric Mobility Promotion Scheme 2024 and Fame II
Although the Electric Mobility Promotion Scheme 2024 is an extended version of Fame II, the government made changes to its subsidy level. EMPS provides subsidies up to Rs. 10,000, but it was Rs. 22,500 for the Fame II scheme. This Rs. 10,000 subsidy is applicable for electric two-wheelers.
EMPS 2024 offers low subsidies, but the initial purchasing cost of an electric two-wheeler is higher under EMPS. Initially, there is a price increase of up to 10% for electric two-wheelers. It becomes challenging for the manufacturer to maintain the subsidy. They need to handle the cost structure of electric vehicles with low subsidies.
These subsidy schemes are a crucial pillar to building an eco-friendly transportation system in India. With the advancements in technology and the development of infrastructure, it is time to switch to electric vehicles.
You may have missed to read:
National Electric Mobility Mission Plan 2020
Benefits And Subsidies for Electric Vehicles
10 Things To Know When Buying An Electric Vehicle
Is This The Right Time To Buy An Electric Vehicle?
Impact Of Electric Vehicles On Indian Economy
Conclusion
The Electric Mobility Promotion Scheme 2024 is significant to maintain energy efficiency, environmental benefits, and technological advancements for achieving global sustainability goals. Incentives or subsidies play a significant role in pushing sales, especially when they stimulate people to switch to electric vehicles. As the world transitions towards a low-carbon future, the adoption and advancement of electric vehicles are vital steps toward creating a cleaner and more sustainable transportation system.
The Electric Mobility Promotion Scheme 2024 supports the government’s broader objective of reducing vehicular emissions and transitioning towards cleaner mobility solutions.
