The Electric Mobility Promotion Scheme (EMPS) will continue until the introduction of the third phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-III), Union Minister for Heavy Industries H.D. Kumaraswamy announced. The EMPS, originally set to end on September 30, will be extended for an additional two months to support electric vehicle (EV) buyers with subsidies.

At the 64th ACMA Annual Session in New Delhi, Kumaraswamy emphasized the government's commitment to enhancing India's EV ecosystem. "The government is unwaveringly committed to advancing India’s EV ecosystem with a focus on fostering local manufacturing and sustainable growth. FAME-III will be rolled out within two months," he said.

This extension marks the second prolongation of the EMPS. Initially launched for four months from April 1 to July 31 with a budget of Rs 500 crore, the scheme was first extended by two months with an increased allocation of Rs 778 crore.

As of August 15, the EMPS has reached 60 percent of its revised target, supporting 334,260 EVs out of a goal of 560,000 units. Claims amounting to Rs 214 crore, which is 27 percent of the allocated Rs 778 crore, have been processed, covering over 42 percent of the funds from the previous budget.

Major original equipment manufacturers (OEMs) like Ather Energy, Ola Electric, TVS, Hero MotoCorp, Kinetic, Revolt, Mahindra, and Piaggio are actively participating in the scheme.

The Ministry of Heavy Industries (MHI) is also planning to introduce a new feature where EVs sold under the scheme will display the ministry’s logo and a certificate detailing the scheme. Furthermore, the government might implement a self-KYC process, requiring customers to upload a selfie and authenticate their Aadhaar details on a government portal to register their vehicles.

Since its inception in 2015 with an initial budget of Rs 900 crore, the FAME scheme, including FAME-II with Rs 11,500 crore, has significantly boosted EV sales, growing from fewer than 7,000 units in FY15 to 1.5 million units in FY24. This increase represents 6.8 percent of total automobile sales. However, the conclusion of FAME-II in March 2024 led to a slowdown in the industry, despite the number of industry players expanding from 124 in FY15 to 731 in FY24.

With the announcement of the EMPS extension, the government aims to ensure continued support for the adoption of e-mobility until the launch of FAME-III.

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