Government EV Subsidy Scheme Will Continue Until FAME-III Arrives

The automobile sector expected FAME-III would be included in the 2024 Annual Budget.

After several speculations, the 2024 Annual Budget announcement finally made it clear that FAME-III is still a few weeks away from being introduced. In the meantime, the Electric Mobility Promotion Scheme 2024 (EMPS) will continue in between. 

The Ministry of Heavy Industries (MHI) has emphasised that EMPS is strictly limited by its budget and timeline. Subsidies will only be available until the funds run out, the vehicle quota is reached, or the end date arrives, whichever comes first that is. More importantly, eligible vehicles must be manufactured and registered within the scheme's validity period.

With a limited budget outlay of ₹500 crore, the EMPS 2024 scheme was introduced as a temporary measure to shield the burgeoning EV landscape from sudden price increases after FAME-II expired on March 31. And in these past three months, the EMPS 2024 has already offered incentives for up to 3,33,387 electric two-wheelers and 40,828 electric three-wheelers. Moreover, the Govt. also cited that a total of ₹54.42 crore for 41,557 vehicles have been made, thus leaving significant room for more in the coming weeks.

As with the annual budget, the Indian automobile industry lauded the increase in the Production Linked Incentive (PLI) scheme for automobiles and automotive components with allocations surging from ₹604 crore last year to ₹3,500 crore this year. This boost is expected to bring in further investments and strengthen local manufacturing capabilities. 

With the upcoming FAME-III, the Government plans to push for localisation and electrification of the commercial fleet. You can read about what one should expect from the upcoming FAME-III subsidy and how it will benefit the aam janta in this story here.