Is the New Electric Mobility Promotion Scheme 2024 (EMPS 2024) the Key to Sustainable Transportation?

A new Electric Mobility Promotion Scheme 2024 (EMPS 2024) has been introduced to replace the expiring Faster Adoption and Manufacturing of Electric Vehicles II (FAME II) scheme. With a total budget of Rs500 crore, the EMPS 2024 aims to promote the adoption of electric two-wheelers (e2W) and three-wheelers (e3W) 

across the country.

Image source cnbctv18

The new scheme is set to support 3,72,215 electric vehicles, including e2W and e3W vehicles, but it will only give benefits to vehicles equipped with advanced batteries. Under EMPS 2024, a subsidy of up to Rs10,000 will be offered for two-wheelers, aiming to support around 3.33 lakh EVs. Additionally, a subsidy of up to Rs25,000 will be provided for small three-wheelers such as e-rickshaws and e-carts, supporting approximately 41, 000 vehicles. Large three-wheelers will receive a subsidy of up to Rs50,000.

Image source EVreporter •

The demand for subsidies increased, and the government aimed to strengthen the industry while preparing it for a future without subsidies. The Rs 500 crore budget will support approximately 400,000 eWs and e3Ws in the next four months.

The FAME II initiative, which the EMPS 2024 has replaced, was launched in 2019 with an initial outlay of around ₹10,000 crore, later supplemented with an additional ₹1,500 crore. FAME II was designed to support e-buses, three-wheelers, two-wheelers, and e-passenger cars over three years. During the recent interim budget, Finance Minister Nirmala Sitharaman allocated ₹2,671 crore for the FAME III scheme, representing a 44% reduction from the earlier amount. However, industry experts predict that this amount may be increased in the full budget after the elections.