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India Industry Forecast

Certificates Granted To 20+ OEMs For Electric Vehicle Subsidies Under EMPS

The Centre has granted certification to over 20 vehicle Original Equipment Manufacturers (OEMs) to participate in the short-term E-Mobility Promotion Scheme (EMPS).

According to sources, these 20 companies, including all major two and three-wheeler manufacturers, can now avail incentives under the scheme, reported FE.

“The process for granting EMPS certificates has been completed. The scheme is now expected to fully pick up pace and support EV adoption in the country,” sources stated.

The EMPS, valid for four months from April to July 2024, with an outlay of Rs 500 crore, aims to subsidise purchases of electric two-wheelers, three-wheelers, and e-rickshaws by consumers. It may be replaced or extended once a new central government is formed in June.

The new scheme aims to support the adoption of over 3,30,000 e-two-wheelers, over 40,000 smaller e-three-wheelers (e-rickshaws or e-carts), and over 25,000 large e-three-wheelers (L5 category).

The maximum incentive per electric two-wheeler has been capped at Rs 10,000, for e-rickshaws or e-carts at Rs 25,000, and for L5 vehicles at Rs 50,000 per vehicle.

Prior to EMPS, the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II) provided an incentive push to electric vehicle (EV) sales by offering subsidies, as these are relatively more expensive than internal combustion engine (ICE) vehicles.

The FAME-II ended on March 31, 2024, and the central government decided not to introduce a new variant in the form of FAME-III.

The Ministry had to provide fresh registration under the new scheme to re-validate products and deter FAME-II defaulters from entering EMPS.