EV Policy; On Wednesday, the Heavy Industries Ministry announced the Electric Mobility Promotion Scheme 2024 for four months from April 1 to July 31, with a budget of 500 crore rupees
Electric Vehicle Policy: The Ministry of Heavy Industries announced the Electric Mobility Promotion Scheme (EMPS) 2024 on Wednesday, allocating 500 crore rupees for four months from April 1 to July 31.
Leading electric two-wheeler company executives expressed skepticism, stating that the short duration of the subsidy might result in slow growth and a focus on premium segments. They anticipate better industry growth in 2025 if the subsidy continues. However, stringent regulations and tough criteria for domestic content make it challenging to qualify for PLI incentives.
While some view development as favorable in the long run, others believe that the reduction in subsidies under the new scheme could dampen growth. The maximum subsidy for electric vehicles has been reduced from ₹22,500 to ₹10,000 for e-two-wheelers and from ₹1,11,505 to ₹50,000 for e-four-wheelers.
The subsidy cap for e-rickshaws is now ₹25,000. Executives from an electric bike company assert that this indicates a shift towards lower-volume and innovation may lag behind for a few years.
Most companies are likely to focus on bikes with engines up to 100cc to stay competitive, while those above 150cc pose a challenge.