Centre announces new scheme to subsidise electric two and three wheelers

The newly announced Electric Mobility Promotion Scheme (EMPS), with a validity period of four months, comes as an interim successor to FAME–II, which ended on March 31, 2024. The EMPS, with an INR 500 crore outlay, drives demand and manufacturing through incentives and advanced battery provisions. It focuses on deepening e2ws and e3ws (including cargo) markets, which cumulatively recorded ~95% market share in FY24. However, EMPS offers a lower per-unit

To better comply with localisation norms, the EMPS will disburse subsidies based on a phased manufacturing programme. How will this work out in tandem with the production-linked incentives (PLIs) provided to the zero-emissions automobile sector as well as advanced cell chemistry?