In a swift turnaround, the government’s Electric Mobility Promotion Scheme (EMPS) has achieved 60 per cent of its revised target, supporting 334,260 vehicles out of the goal of 560,000 units as of August 15. This significant progress follows a slow start, with less than 10 per cent of the target reached by July 15 since the scheme’s launch on April 1. Government sources credit the turnaround to the onboarding of new players and the addition of more models by existing companies, which drove increased disbursement.
“Today, 31 OEMs (original equipment manufacturers) are enrolled under the scheme, offering 168 models. The onboarding process was initially slow but thorough, as we implemented stringent qualification criteria. However, we are now on track to surpass even the revised target,” a senior government official said.
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“If we compare it to our initial target, we’ve achieved nearly 90 per cent of our vehicle support goal,” another official said, requesting anonymity.
Claims amounting to 27 per cent, or Rs 214 crore, have been submitted from the Rs 778 crore allocated under the scheme. When compared to the previous outlay, this represents over 42 per cent of the funds utilised.
Major OEMs participating in the scheme include Ather Energy, Ola Electric, TVS, Hero MotoCorp, Kinetic, Revolt, Mahindra, and Piaggio.
Under the EMPS, 13 electric two-wheeler (e2W) and 10 electric three-wheeler (e3W) companies were onboarded in April. In May, the scheme added only one e2W and four e3W companies. June saw the addition of five e2W companies, and one e3W company joined in July. Three OEMs — Bajaj, Kinetic, and Godawari — are involved in both e2W and e3W categories.
In July, electric vehicles sales in the country were nearly 28 per cent higher than in the previous month and the highest for a month in the current financial year, according to Vahan data from the Ministry of Road Transport and Highways (MoRTH). If you look at the calendar year 2024, EV sales have crossed a million in the first seven months.
“The rise in EV sales is also due to the improved claim distribution by the government. The scheme has helped the sector achieve a new sales high,” one of the officials quoted above said.
The July sales, say sector experts, were driven by widespread discounts and customers hurrying their purchases. Both can be attributed to the imminent expiry, due on July 31, of EMPS 2024.
Sales declined following the expiry of FAME-II, as incentives under the new EMPS were significantly reduced. Under EMPS, incentives for e2Ws were cut from Rs 66,000 to Rs 10,000, and for e3Ws from Rs 1,11,505 to Rs 25,000. Additionally, while FAME-II included incentives for buses and cars, EMPS focuses solely on e2Ws and e3Ws.
SLOW AND STEADY
Slow start: Less than 10% of the vehicle sale target was achieved by July 15.
The turnaround: 60% of EMPS’ revised target reached as on August 15.
Turnaround factors: Onboarding of new OEMs and addition of more models.
OEMs on board: 31 enrolled, including Ather, Ola, TVS, and Hero, offering 168 models.
Scheme extension: Originally set to end on July 31, now extended till September 30.
First Published: Aug 20 2024 | 10:46 PM IST
