Indian govt's Electric Mobility Promotion Scheme to expire on July 31. Know more

5 months ago | 50 Views

The government's Electric Mobility Promotion Scheme (EMPS) 2024 will conclude on July 31. Introduced in April with a budget of ₹500 crore, the scheme aimed to accelerate the adoption of electric vehicles (EVs) in India.

The scheme, designed to support the development of the EV manufacturing ecosystem, has allocated ₹493.55 crore for demand incentives, benefiting 372,215 vehicles. However, the Ministry of Heavy Industries has clarified that the scheme or its components may close earlier if funds are exhausted before July 31. Claims will be processed on a first-come, first-served basis.

To be eligible for incentives, EVs must be manufactured and registered within the scheme's validity period. The subsidies are applicable to electric two-wheelers and three-wheelers sold and registered until funds are depleted or the target number of vehicles is reached.

EV sales growth projected

The two-wheeler industry is optimistic about a steady growth rate of 7-9 per cent in the upcoming financial year (FY25). This growth is expected to be driven by increased EV sales, supported by the government's EMPS 2024.

In FY23, the EV segment witnessed remarkable growth, with sales reaching 7.3 lakh units, accounting for 4.54 per cent of total two-wheeler sales. This represents a substantial year-on-year increase of 188 per cent.

A recent BCG report sheds light on the surging popularity of electric two-wheelers among Indian consumers. The study, titled "Surging ahead: How electric two-wheelers are rapidly gaining popularity with the diverse Indian consumer," delves into the evolving dynamics of the E2W market. The report reveals a complex consumer landscape with diverse preferences and needs, shaping the industry's trajectory.

The study identifies ten distinct consumer segments, each with unique priorities. While some prioritize affordability and practicality, others are drawn to the eco-friendly and futuristic aspects of electric mobility. This diverse demand underscores the need for a wide range of E2W options to cater to different lifestyles.

Encouragingly, the report finds a growing acceptance of electric vehicles among Indian consumers. With one in three potential two-wheeler buyers considering electric options, the stage is set for accelerated EV adoption. This shift signifies a growing preference for sustainable transportation solutions, driving the E2W market forward.