Fame 2 Subsidy: Eligibility, How To Claim Subsidy, Amount, Last Date, Benefits

The FAME 2 subsidy (Faster Adoption and Manufacturing of Electric Vehicles) is a government initiative to boost electric vehicle adoption in India by offering direct financial incentives. With the FAME 2 subsidy ending on 31st March 2024, the government has introduced the Electric Mobility Promotion Scheme (EMPS) 2024 to continue offering EV incentives for two-wheelers, three-wheelers, buses, and charging infrastructure. 

Under the FAME 2 subsidy scheme, eligible EV buyers can receive up to ₹15,000 subsidy on electric two-wheelers, subject to 15% of the vehicle’s ex-factory cost. Read on to learn how the FAME 2 subsidy scheme has evolved in 2025.

What is FAME 2 Subsidy?

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 FAME 2 subsidy scheme officially ended on 31st March 2024, the government has extended EV support under a new scheme called Electric Mobility Promotion Scheme (EMPS) 2024. EMPS continues the objectives of FAME with revised incentives.

FAME 2 Subsidy on Electric Scooter

Under the FAME 2 subsidy scheme, over 10 lakh electric two-wheelers were supported during the scheme’s active phase. The subsidy of ₹15,000 per vehicle (or 15% of the ex-factory price) is no longer applicable after March 31, 2024.

From April 2024, incentives continue under EMPS 2024, which offers subsidies only on certified models listed by the Ministry of Heavy Industries. Buyers must check eligibility under EMPS as FAME 2 subsidy benefits are now discontinued for new purchases in 2025.

FAME 2 Subsidy Eligibility Criteria

To be eligible under FAME 2, you must be an individual who meets the following conditions:

• You must have a valid ID proof.
• You must have never claimed a FAME 2 subsidy before for electric two-wheelers.
• The name provided during the registration must exactly match the name on the ID proof.

FAME 2 Subsidy Amount/FAME 2 Subsidy Reduction

The FAME subsidy was reduced from ₹15,000 per kWh (up to 40% of cost) to a flat 15% of the vehicle’s ex-factory price effective from June 1, 2023. However, this pricing support ended with the closure of FAME 2 subsidy on March 31, 2024.

In 2025, the updated Electric Mobility Promotion Scheme (EMPS) offers reduced subsidies focused on electric two- and three-wheelers only:

• Two-wheelers: ₹10,000 per vehicle
• Three-wheelers: ₹25,000–₹50,000 depending on the category

How to Claim FAME 2 Subsidy?

As the FAME 2 subsidy scheme has ended, fresh claims for this subsidy are no longer applicable. In 2025, benefits must be availed under EMPS 2024, which does not require any separate subsidy claim form by the buyer. The subsidy is provided directly to manufacturers and deducted from the purchase price at the dealership.

Companies Approved For Subsidy Under FAME 2

More than 50 companies got approval under the subsidy. All of them fall in either of the two following categories.

• They are either electric vehicle manufacturers.
• Otherwise, they are electric vehicle infrastructure providers.

Some popular names in this list include Ola electric technologies, Tata Motors, TVS Motors etc.

Note: Under EMPS 2024, only selected OEMs (Original Equipment Manufacturers) certified by the Ministry of Heavy Industries are eligible to offer EVs under the revised incentive structure. Buyers should verify the approved list on the MHI website before purchase.

Benefits for Consumers in FAME 2 Subsidy

The FAME 2 subsidy made electric vehicles more affordable between 2019–2024. In 2025, benefits continue under the EMPS scheme, albeit at reduced rates. This continues to:

• Promote EV adoption
• Encourage the switch from fuel-powered to battery-powered transport
• Offer eco-friendly transportation solutions

State governments like Gujarat, Maharashtra, and Delhi continue to offer state-level EV subsidies, which may be combined with EMPS 2024 benefits.

Final Word

India’s transition to electric mobility remains a national priority in 2025. Although the FAME 2 subsidy scheme has ended, the government has introduced the Electric Mobility Promotion Scheme (EMPS) 2024 to continue financial support for EV buyers. If you're planning to buy an electric scooter or three-wheeler in 2025, make sure it’s listed under the EMPS-approved vehicles to receive the latest incentive benefits.