The centre on March 13 introduced a brand new scheme to advertise sale of electrical two and three wheelers.According to Heavy Industries Minister Mahendra Nath Pandey, Rs 500 crore is being allotted for the Electric Mobility Promotion Scheme (EMPS), 2024. This scheme is legitimate for 4 months from April 1 onwards.

In February 2024, the government had raised the allocation below the second iteration of Faster Adoption & Manufacturing of Electric Vehicles in India (FAME-II) scheme to Rs 11,500 crore, up from Rs 10,000 crore. A press release from the Ministry of Heavy Industries had stated these subsidies for demand incentive could be eligible for electrical two, three, and 4 wheelers offered until March 31, 2024, or until the time funds had been accessible, whichever was earlier.

In that occasion, the subsidies for electrical two, three, and 4 wheelers had been revised to Rs 7,048 crore, of which Rs 5,311 crore was for electrical two-wheelers. An allocation of Rs 4,048 crore was made for buying electrical buses and organising electric vehicle (EV) charging stations.

The FAME India scheme seeks to facilitate the uptake of EVs and chargers by subsidising them. The programme additionally goals to spur localisation of EV elements whereas additionally driving gross sales up.

Initiated in 2019, FAME II has to date offered subsidy on gross sales of almost 1.2 million two-wheelers, 141,000 three-wheelers, and 16,991 four-wheelers. More than Rs 5,829 crore has been disbursed below the FAME II scheme.

The demand for and affordability of electrical two-wheelers in India have been on the upswing for a while. Price cuts and launch of reasonably priced fashions by corporations like Ola Electric, Ather Energy and Bajaj Auto-owned Chetak Technology have performed a serious position in narrowing the distinction between prices of battery-powered and petrol-run two-wheelers within the nation, ET reported in February 2024.

Rising affordability is anticipated to quicken the adoption of electrical two-wheelers in India, trade insiders say.

Sales have been on the rise and are being seen at about 850,000 items for FY2024. Electric two-wheelers, nevertheless, nonetheless solely make up simply 4.5% of the market.

Along with (nonetheless) greater costs, poor charging infra is taken into account to be a serious reason for sluggish uptake of those car within the nation.

According to knowledge from govt’s Vahan portal, electrical two-wheeler makers noticed gross sales at 81,608 items in January 2024, which is a 26% from a yr in the past, and eight% extra month-on-month.

Meanwhile, electrical three-wheelers gross sales have steadily risen due to the truth that the increasing ecommerce trade has more and more taken to those autos as a way for fixing last-mile connectivity issues.

Helpful coverage strikes like PLI, FAME, Make in India and Atmanirbhar Bharat have performed a big position in pushing gross sales up. It has led to extra home manufacturing and making EVs price environment friendly to fulfill particular Indian necessities. All these elements have mixed to facilitate in deeper electrical three-wheeler penetration within the nation.

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