The FAME II subsidy promoted EV adoption in India through financial incentives. After FAME II ended in March 2024 and EMPS concluded in September 2024, the government introduced the PM E-DRIVE Scheme to continue EV demand incentives.
Key Highlights
- Two-Wheeler Deadline: Subsidies are available until 31st July, 2026, or until 24.79 lakh units are sold.
- Three-Wheeler Timeline: E-rickshaw and e-cart incentives continue until March 31, 2028; L5 cargo EV subsidies ended on December 26, 2025.
- Price Limits: Eligible EVs must cost under ₹1.5 lakh (two-wheelers) and ₹2.5 lakh (three-wheelers) ex-factory.
The FAME 2 subsidy (Faster Adoption and Manufacturing of Electric Vehicles) was launched in April 2019 to support electric vehicle adoption in India by making EVs more affordable. Although this scheme ended on 31st March, 2024, its incentives and financial benefits have now been incorporated into the ₹10,900 crore PM E-DRIVE Scheme, which offers updated subsidies for different vehicle categories.
Under the FAME 2 subsidy, more than 10 lakh electric two-wheelers received incentives, but the earlier benefit of up to ₹15,000 per kWh is no longer available. Buyers searching for a FAME 2 subsidy on electric scooter list can now check eligible models under the PM E-DRIVE portal, which includes only approved OEMs meeting local manufacturing norms.
To claim EV incentives under the PM E-DRIVE Scheme, buyers must meet these conditions: