HomeWhat's TrendingGovernment's INR 500 Crore Electric Mobility Scheme Signals Strong EV Push: Analysts

Government’s INR 500 Crore Electric Mobility Scheme Signals Strong EV Push: Analysts

New Delhi: The recent announcement of the INR 500 crore Electric Mobility Promotion Scheme 2024 by the Ministry of Heavy Industries underscores the government’s steadfast commitment to advancing electric vehicle (EV) adoption, industry experts highlighted on Thursday.

Scheduled to kick off in April 2024 for a four-month duration, the scheme specifically targets 2-wheelers and 3-wheelers, aiming to propel the country towards a more sustainable transportation future.

Srikumar Krishnamurthy, Senior Vice President and Co-Group Head of Corporate Ratings at ICRA, commended the initiative, emphasising its role in accelerating the nation’s electrification drive.

‘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 stated.

According to ICRA, the scheme is poised to boost e-2W and e-3W penetration levels to 6-8% and 14-16%, respectively, in fiscal 2024-25.

Ayush Lohia, CEO of Lohia, echoed this sentiment, highlighting the scheme’s potential to stimulate market expansion and foster growth within the EV industry.

‘With subsidies of up to INR 25,000 for small three-wheelers and INR 50,000 for large ones, the scheme is expected to drive increased demand for three-wheelers and two-wheelers,’ Lohia remarked.

The scheme targets the adoption of 3,72,215 EVs, including e-2W and e-3W vehicles, with incentives directed towards advanced battery-fitted vehicles.

Commenting on the scheme, Hyder Khan, CEO of Godawari Electric Motors, expressed relief at the clarity provided by the announcement, especially amidst the impending conclusion of the FAME-II program.

‘While the scheme emphasises EV two-wheelers and three-wheelers, more clarity on product recertification would have been beneficial. Nevertheless, long-term government support remains crucial for fortifying the EV ecosystem,’ Khan emphasised.

H S Bhatia, Managing Director of Kelwon Electronics and Appliances Pvt Ltd, lauded the government’s commitment to sustainable transportation, citing the incentives offered as a significant driver for consumer adoption of electric mobility.

The scheme, as outlined by the Ministry of Heavy Industries, seeks to promote an efficient, competitive, and resilient EV manufacturing industry in line with the vision of Aatmanirbhar Bharat.

Monika Shanmugam