The government has announced that the last date for its Electric Mobility Promotion Scheme (EMPS) 2024 is July 31. The scheme aims to promote green mobility and the development of the electric vehicle (EV) manufacturing ecosystem in the country. The scheme, which will run from April 1 to July 31, has a budget of Rs 500 crore.
The total payout under the demand incentive is limited to Rs 493.55 crore, which will support the purchase of 3,72,215 vehicles. If the funds for the scheme are exhausted before July 31, 2024, the scheme will be closed and no further claims will be accepted.
Claims will be processed on a first-come-first-serve basis. To be eligible for the scheme, EVs must be manufactured and registered within the validity period of the EMPS 2024 certificate. The demand incentives are applicable to electric two-wheelers and three-wheelers sold and registered until the funds are available or the maximum number of vehicles supported is reached, or until July 31, 2024, whichever comes first.
The two-wheeler industry is expected to see a growth rate of 7 to 9 percent in FY25, driven by higher EV sales supported by the EMPS 2024. In FY23, EV sales reached about 0.73 million units, accounting for 4.54 percent of total two-wheeler sales, representing a significant year-on-year growth of 188 percent.
Meanwhile, the Uttar Pradesh government has announced an exemption on road tax for hybrid cars to encourage the use of eco-friendly vehicles. The state is providing a 100 percent waiver on registration fees for strong hybrid electric vehicles and plug-in hybrid electric vehicles.
This move is expected to benefit hybrid cars offered by automakers such as Maruti, Toyota, and Honda. For example, popular hybrid models like the Grand Vitara by Maruti Suzuki, and the Innova Hycross and Urban Cruiser Hyryder by Toyota stand to gain from this decision.
The average registration cost for the hybrid trims of Grand Vitara and Urban Cruiser Hyryder is about Rs 1.80 lakh in UP. The road tax waiver will significantly reduce the cost of these cars. Buyers of the Innova Hycross and Invicto can expect to benefit up to Rs 3 lakh in on-road prices, depending on the variant.
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Inputs from IANS
