To Encourage Electric Vehicles, Government Launches Rs. 500 Crore e-mobility Plan

Electric Vehicles
Citation: Image used for information purpose only. Picture Credit:

A new initiative to encourage e-mobility in the nation was unveiled by the heavy industries ministry on Wednesday. It would cost Rs 500 crore and run for four months, starting in April 2024.
The new program is designed for two- and three-wheelers. On March 31, 2024, the Faster Adoption and Manufacturing of Electric Vehicles in India program’s second phase comes to a conclusion.

The Modi government is dedicated to advancing e-mobility in the nation, according to Heavy Industries Minister Mahendra Nath Pandey, who unveiled the E-Mobility Promotion Scheme 2024 (EMPS 2024).

According to the minister, the plan will run for four months, ending in July 2024.A support of Rs 10,000 each two-wheeler would be given under the initiative. Support for roughly 3.3 lakh two-wheelers is the goal. For the purpose of buying tiny three-wheelers, a subsidy of Rs 25,000 would be provided (e-rickshaw and e-carts). Over 31,000 automobiles of this type will be protected.

When a large three-wheeler is purchased, Rs 50,000 in financial assistance will be provided.
E-vehicles sold up until March 31, 2024, or until funds are available, are eligible for subsidies under the second phase of the FAME initiative. Sales of electric two-wheeler manufacturers reached 81,608 units in January 2024, up 8% month over month and 26% from the previous year, according to data from the government’s Vahan portal.

Meanwhile, as the burgeoning e-commerce sector has come to rely more and more on these cars to address last-mile connectivity issues, sales of electric three-wheelers have been rising rapidly.

Positive policy initiatives like PLI, FAME, Made in India, and Atmanirbhar Bharat have been crucial in increasing sales. More domestic manufacture has resulted from it, and EVs are now more reasonably priced to satisfy Indian regulations. Together, these elements have made it easier for electric three-wheelers to become more widely used throughout the nation.

Read More