Electric Mobility Promotion: This govt scheme can spur sale of electric two-wheelers and three-wheelers, says expert

In an ambitious move to push the adoption of electric vehicles and foster e-mobility environment in India, the Central Government has launched a new scheme, the Electric Mobility Promotion Scheme (EMPS), 2024, to promote the sale of electric two-wheelers (e2W) and three-wheelers (e3W) in the country. For this, the centre has allocated Rs 500 Crore, valid over the next four months, starting from April 2024. 

Hari Kiran, Co-Founder & COO at eBikeGo, believes the initiative is poised to bring about a revolution in the electric two-wheeler and three-wheeler segments, and assuring a greener future and a surge in employment and entrepreneurship opportunities. 

The Co-Founder & COO at eBikeGo points at these 4 factors to explain how the Central Government's Electric Mobility Promotion Scheme (EMPS) 2024, could boost the EV sector in the country —   

Focus on Sustainable Urban Mobility
Hari Kiran says that primarily, the scheme focuses on electric two-wheelers and three-wheelers, including registered e-rickshaws, e-carts and L5 Category vehicles, recognising their role in providing affordable and eco-friendly public transportation. "By making the scheme applicable for electric 2W and 3W registered for commercial purposes, as well as privately owned two-wheelers, the centre is making an essential and effective push towards adoption of sustainable urban mobility," he informs. 

Incentives as a Motivation
He says that, as per the government officials, a substantial portion of the scheme budget — approximately Rs 493.55 crore has been set aside for subsidies and demand incentives for eligible EVs. He adds, "This considerable financial support is developed to lower the cost barrier for consumers and fleet operators alike, making it financially feasible to switch to electric vehicles. The emphasis on vehicles that have advanced battery technology further makes sure that the benefits of the plan are directed towards encouraging the adoption of high efficiency and fit for the environment electric vehicles."

Beyond just Sales 
The Co-Founder & COO at eBikeGo believes that the scheme's focus extends beyond just increasing sales of the electric vehicles in India. "It summarizes the vision of AatmaNirbhar Bharat (Self Reliant India) by supporting a strong and competitive domestic EV manufacturing industry. With the adoption of the Phased Manufacturing Programme (PMP), the electric mobility promotion scheme aims to secure the entire EV Supply chain in India, ranging from battery production to the assembling of the vehicle." He believes that this will eventually create a multitude of employment opportunities across the industry.

Projected Impact and Future Visions
With the target to back the adoption of 3,72,215 EVs, Hari Kiran believes the scheme is poised to make a noteworthy effect on the Indian EV Market. He avers, "This step towards e-mobility is not just headed towards reducing the carbon footprints but is also a strategic move to decrease the reliance on fossil fuels, thus ensuring the country's energy resources security."

Moreover, he feels the scheme is expected to catalyze a broader cultural shift towards sustainable conveyance, encouraging more customers and businesses to adopt EV as their preference in years to come. "By making electric vehicles more accessible and financially attractive, this government initiative though on a smaller scale could well be the tipping point for EV industry in India, setting a model for future initiatives in the industry," he sums up saying.