Electric-mobility scheme shows govt’s continued thrust

New Delhi: The Rs 500 crore Electric Mobility Promotion Scheme 2024 shows the government’s continued thrust on vehicle electrification as it is indispensable on a long-term basis to fortify the case for an EV ecosystem, industry experts said on Thursday.

Ministry of Heavy Industries has announced the new scheme to promote e-mobility in the country with an outlay of Rs 500 crore for four months beginning April 2024. The new scheme is for 2-wheelers and 3-wheelers. Commenting on the government’s decision, Srikumar Krishnamurthy, Senior Vice President and Co-Group Head - Corporate Ratings, ICRA said the scheme is a favourable move towards the acceleration of the electrification pace in the country. “The EMP scheme reflects the government’s continued thrust on vehicle electrification, although the quantum of subsidy is seen lower in line with expectations,” he said. ICRA expects the penetration levels of e-2w and e-3w (excluding e-rickshaws) to reach 6-8 per cent and 14-16 per cent, respectively in fiscal 2024-25, he added. Ayush Lohia, CEO, Lohia opined that the scheme offers a significant opportunity to expand the market and contribute to the growth of the electric vehicle industry.

“With subsidies of up to Rs 25,000 for small three-wheelers and Rs 50,000 for large ones, the scheme is expected to drive increased demand for three- wheelers and two-wheelers,” he said. Lohia manufactures over 12 types of vehicles, ranging from electric rickshaws to auto rickshaws designed for both passenger and goods transportation. The scheme aims to support 3,72,215 EVs including e-2W (3,33,387) and e-3W (38,828 including 13,590 rickshaws and e-carts and 25,238 e-3W in L5 category). To encourage advanced technologies, benefits of incentives will be extended to only those vehicles which are fitted with advanced battery.