Reduction in EV subsidy on two-wheelers and three-wheelers, end of subsidy on cars and buses

Ahmedabad: To promote electric two-wheelers and three-wheelers in the country, the Central Government on Wednesday introduced the Electric Mobility Promotion Scheme 2024. Heavy Industries Minister Mahendra Nath Pandey said the central government has allocated Rs 500 crore for the new scheme, which will be implemented for the next four months from April.

Pandey said that, instead of the existing Faster Adoption and Manufacturing Electric Vehicles Phase-II initiative, the next scheme will be implemented from April 1. Allocated Rs. Rs 500 crore will be utilized for tire support to approximately 4 lakh two-wheelers and three-wheelers over a period of 4 months.

Under the new scheme, the government is giving incentives on e-two-wheelers and e-three-wheelers, but no such incentive will be given to e-four wheelers and e-buses under the new scheme. To meet the growing demand and increase the burden on EV manufacturers, the government has fixed the maximum subsidy on two-wheelers at Rs 10,000 per vehicle.

Which was earlier Rs 22,500. Apart from this, the subsidy on three-wheelers has been reduced from Rs 1,11,505 to Rs 1,11,505. 50,000 have been made. Both categories of vehicles will get an incentive of Rs 5,000 per kilowatt hour. Considering the high demand, the subsidy has been reduced. Its objective is to strengthen the industry and prepare it for the post-subsidy phase.

EV sales have registered a strong growth of more than 45 percent so far this year. A total of 15 lakh EVs have been registered in 2023, significantly more than 10 lakh last year. With this, the share of EV in the country's auto sector has increased from 4.8 percent to 6.3 percent in 2022.