New Delhi9 days ago
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The central government has extended the Electric Mobility Promotion Scheme (EMPS) till 30 September. Along with this, the government has increased the subsidy from Rs 500 crore to Rs 778 crore. The Heavy Industry Ministry 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 provides subsidy on electric two wheelers, electric three wheelers and e-rickshaws. No information has been given about the inclusion of electric 4 wheelers in it.
Subsidy target for two wheelers increased to 5,00,080
The government has now increased the subsidy target for two-wheelers in EMPS to 5,00,080, which was earlier 3.37 lakh. At the same time, the target for three-wheelers has been increased from 41,306 to 60,709 and the target for big electric three-wheelers has been increased from 25,238 to 47,119. Whereas, no change has been made in the target for electric rickshaws. The government is giving subsidy at the rate of Rs 5000 per kilowatt on electric vehicles of different categories.
To promote EV, the Center introduced FAME scheme in 2019
Earlier, with the aim of promoting electric vehicles, the central government had launched the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme in 2019. Under this, subsidy is given on electric vehicles to promote them.
Rs 800 crore was allocated under the FAME-1 scheme and Rs 10,000 crore for FAME-2 in 2022. After this, on 20 February 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 March 31, 2024, after which subsidy is being given under EMPS.
15.3 lakh electric vehicles sold in 2023
The demand and sales of electric vehicles have increased rapidly in the country. Especially the two-wheeler and three-wheeler segment has seen more growth. The 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-wheelers will be equal
FADA President Manish Raj Singhania says that petrol two-wheeler manufacturers are also increasing the models of e-two-wheelers. Currently, their share is around 5%. It will increase manifold in 2-3 years. Prices may also come down to be closer to petrol two-wheelers.
According to Rajiv Arora, founder of Altus EV-Tech, more than 40% of the cost of an e-two-wheeler is that of the battery. In 5-6 months, the prices of Chinese batteries have come down by about 40% to 50%. Due to this, we have reduced the prices of the entire product range by 15%.
