The Indian government has unveiled a new scheme aimed at accelerating the sales of electric two-wheelers and three-wheelers in the country. With an allocation of Rs 500 crore, the Electric Mobility Promotion Scheme (EMPS) is set to be implemented for a period of four months, starting from April 1. This initiative comes as part of the government's ongoing efforts to promote the adoption of electric vehicles (EVs) and reduce carbon emissions in the transportation sector.

Boosting Electric Mobility

The Electric Mobility Promotion Scheme (EMPS) is a significant step towards encouraging the use of electric two-wheelers and three-wheelers in India. By providing financial incentives and subsidies, the government aims to make EVs more affordable and accessible to the masses. This move aligns with the larger goal of reducing the country's dependence on fossil fuels and transitioning to sustainable modes of transportation.

Expansion of FAME Scheme

The announcement of the EMPS follows the government's decision to increase the allocation under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) scheme. With a revised budget of Rs 11,500 crore, up from Rs 10,000 crore, the FAME-II scheme provides subsidies for electric vehicles, including two-wheelers, three-wheelers, and four-wheelers. The subsidies will be applicable until March 31, 2024, or until the funds are exhausted.

Driving Affordability and Demand

The demand for electric two-wheelers in India has been steadily increasing, driven by factors such as price cuts and the introduction of affordable models by companies like Ola Electric, Ather Energy, and Bajaj Auto-owned Chetak Technology. These efforts have narrowed the price gap between electric and petrol-powered two-wheelers, making EVs more attractive to consumers. Industry insiders predict that rising affordability will lead to a faster adoption of electric two-wheelers in the country.

Addressing Charging Infrastructure

While the affordability of electric two-wheelers has improved, the lack of adequate charging infrastructure remains a significant challenge in India. Insufficient charging stations hinder the wider adoption of EVs, as consumers are concerned about range anxiety and the availability of convenient charging points. The government's focus on setting up electric vehicle charging stations, as part of the FAME-II scheme, aims to address this issue and provide a more robust charging infrastructure network.

Impact on Three-Wheeler Segment

Electric three-wheelers have gained traction in India, particularly in the last-mile connectivity segment, fueled by the growing e-commerce industry. The expansion of schemes like FAME and EMPS, along with policies such as Production Linked Incentives (PLI) and Make in India, has facilitated domestic manufacturing and made electric three-wheelers more cost-efficient. These factors have contributed to the increased penetration of electric three-wheelers in the country.

While challenges such as charging infrastructure need to be addressed, the concerted efforts of the government and the growing affordability of EVs are expected to accelerate the adoption of electric vehicles, paving the way for a cleaner and greener future of mobility in India.