In a major boost for electric two-wheeler buyers, the Indian government has extended the Electric Mobility Promotion Scheme 2024 (EMPS 2024) by two months, now running until September 30, 2024. The scheme’s funding has also been significantly increased from Rs. 500 crore to Rs. 778 crore.

Launched on April 1, 2024, EMPS 2024 is designed to accelerate India’s transition to electric vehicles (EVs), with a focus on two-wheelers (e-2W) and three-wheelers (e-3W), including registered e-rickshaws and e-carts. The updated targets aim to support a total of 560,789 electric vehicles, including 500,080 e-2Ws and 60,709 e-3Ws. The scheme is intended to enhance affordable and environmentally friendly public transport while also offering incentives for privately or corporately owned registered e-2Ws.

This extension and increase in funding are welcomed by the EV industry, especially after the abrupt end of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME) II program in March 2024. The end of FAME II led to a significant sales decline for major players like Okinawa, Ampere, and Hero Electric, due to a 25% price increase following the subsidy withdrawal.

EMPS 2024 not only extends support but also introduces incentives for EVs equipped with advanced battery technologies. The scheme incorporates a Phased Manufacturing Programme (PMP) to bolster domestic production and align with Prime Minister Narendra Modi’s Aatmanirbhar Bharat (Self-Reliant India) initiative.

Despite this positive development, challenges persist. The industry requires more flexible financing options and must appeal to traditional two-wheeler buyers beyond the early adopters. Additionally, the electrification of motorcycles remains a complex issue that affects the overall pace of EV adoption.

As the Indian EV market evolves, companies like Ola Electric and Ather, alongside legacy players such as Hero MotoCorp, Bajaj Auto, and TVS Motor, are intensifying their efforts in the electric two-wheeler segment. The government’s renewed support through EMPS 2024 is expected to provide much-needed stability and foster continued growth in the sector.