Budget 2024: EV sector seeks comprehensive support and innovation boost
With the Union Budget 2024 around the corner, India’s electric vehicle (EV) industry is bracing for crucial policy announcements. The sector, which has witnessed significant growth in recent years, is now at a juncture where industry leaders believe that the support from the central government will help in maintaining the growth momentum.
That said, the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) India scheme, which has been instrumental in driving EV adoption, concluded on March 31, 2024.
While the scheme has provided a much-needed support, challenges such as limited charging infrastructure and high battery costs persist. Later, the Ministry of Heavy Industries (MHI) launched the Electric Mobility Promotion Scheme (EMPS) to enhance the adoption of two-wheeler and three-wheeler electric vehicles and support EV development and manufacturing in India.
The EMPS-2024, with a budget of Rs. 500 crore, is set to expire on July 31, 2024. It offers subsidies of up to Rs 10,000 for two-wheeler EVs, up to Rs 25,000 for small three-wheeler EVs, and up to Rs 50,000 for large three-wheeler EVs. Now, with the Union Budget set to be presented in the parliament on July 23, 2024, let’s take a look at what the budget expectations from the EV industry looks like.
