India's push for sustainable mobility has a powerful engine: the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. Specifically, FAME-II (Phase II, launched in 2019) was a flagship initiative by the Government of India designed to accelerate the adoption of electric vehicles (EVs) and develop the domestic EV manufacturing ecosystem.
What is FAME-II?
FAME-II was a financial incentive program with a budget of ₹10,000 crore (later revised) that ran until March 2024. Its core mission was to reduce air pollution, cut down on oil imports, and transition the country towards cleaner, smarter transportation.
Key Objectives & Focus Areas
The scheme was designed with a clear, multi-pronged strategy:
Demand Incentives: To make EVs more affordable for end-users, mainly through upfront purchase subsidies.
Electrification of Public and Shared Transport: A major focus was on supporting the purchase of e-buses, e-three wheelers, and e-four wheelers for commercial and public use. However, private electric two-wheelers also received substantial incentives.
Charging Infrastructure: To address "range anxiety" and encourage adoption, a significant portion of the budget was allocated to setting up a robust national EV charging network.
Domestic Manufacturing (Localisation): The scheme included Phased Manufacturing Program (PMP) requirements to promote local production of key EV components like batteries, motors, and controllers, thereby boosting the 'Make in India' movement.
Who Benefited from the Subsidies?
The scheme provided direct financial benefits to buyers of various registered electric vehicle categories:
| Vehicle Segment | Primary Focus | Incentive Mechanism (General) |
| Electric Two-Wheelers (E-2W) | Mass segment, including private buyers | Upfront reduction in purchase price, calculated per kWh of battery capacity. |
| Electric Three-Wheelers (E-3W) | Public and shared transport | Upfront reduction in purchase price, calculated per kWh of battery capacity. |
| Electric Four-Wheelers (E-4W) | Mostly for commercial/fleet use | Incentives were available for a target number of passenger cars. |
| Electric Buses (E-Buses) | City and state public transport | Significant support for deployment on an operational cost model. |
Eligibility Note: To qualify, vehicles had to meet certain technical standards, including minimum range and top speed, and use advanced batteries like Lithium-ion.
The Way Forward: After FAME-II
While the FAME-II scheme officially concluded in March 2024, its momentum continues.
The government introduced the Electric Mobility Promotion Scheme (EMPS) 2024 to maintain financial support for the transition, albeit with revised and often reduced incentives, primarily focusing on electric two and three-wheelers. FAME-II laid a strong foundation, and future policies are expected to build upon its successes, addressing new challenges to drive India toward its goal of a sustainable, electrified transport sector.
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