The FAME II subsidy scheme played a major role in making electric vehicles more affordable in India. It supported eligible electric two-wheelers, commercial EVs, electric buses, and public EV charging stations.
However, FAME II is no longer active - the scheme ended on 31 March 2024 and was followed by newer latest EV subsidy schemes in India.
Here's how FAME II worked, who was eligible, and what EV buyers should check today.
What Is the FAME II Subsidy Scheme?
FAME II was a Central Government scheme that offered financial support for eligible electric vehicles, electric buses, and public charging infrastructure.
What Does FAME Stand For?
FAME stands for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India.
When Did FAME II Start and When Did It End?
FAME II:
- Came into effect on 1 April 2019
- Was implemented by the Ministry of Heavy Industries
- Continued until 31 March 2024
- Had a final budgetary support of ₹11,500 crore
The subsidy was usually given as an upfront reduction in the vehicle's purchase price. The original equipment manufacturer (OEM) later claimed the amount from the government.
Read - Electric Vehicle Subsidy in India 2026: State & Central Rates
How Is FAME II Different From FAME I?
FAME I was introduced in 2015 as the first phase of India's electric mobility programme. FAME II was larger in scale and focused more strongly on:
- Public and shared transport
- Eligible electric two-wheelers
- Commercial electric three-wheelers and four-wheelers
- Electric buses
- EV chargers and public EV charging stations
- Domestic EV manufacturing
FAME II mainly supported public or commercial vehicles in the electric three-wheeler, four-wheeler, and bus categories. Privately owned electric two-wheelers were also covered.
Why Was FAME II Introduced?
FAME II was introduced to reduce the upfront cost of EVs, promote cleaner transport, and build India's electric vehicle ecosystem.
At the time, electric vehicles were more expensive than petrol and diesel vehicles. Public charging infrastructure was also limited, and many EV components were imported.
FAME II aimed to address these challenges by:
- Making eligible EVs more affordable
- Supporting electric public transport
- Reducing dependence on fossil fuels
- Lowering vehicle emissions
- Encouraging local EV manufacturing
- Supporting battery and component suppliers
- Expanding public EV charging stations
The scheme gave greater importance to buses, taxis, commercial vehicles, and shared mobility because these vehicles usually travel longer distances and consume more fuel, which is also why understanding the EV registration process at RTO matters for anyone buying into these categories.
Which Vehicles Were Covered Under FAME II?
FAME II covered several vehicle categories, but eligibility conditions were not the same for all buyers.
| Vehicle Category | |
| Electric two-wheelers | Private, corporate, and commercial buyers |
| Electric three-wheelers | Public-transport and commercially registered vehicles |
| Electric four-wheelers | Mainly public-transport and commercial vehicles |
| Electric buses | State and city transport organisations |
| Charging stations | Approved public charging-infrastructure projects |
Were Electric Two-Wheelers Covered Under FAME II?
Yes. Private buyers could receive a subsidy on an eligible electric two-wheeler, provided the exact model was approved under FAME II.
Were Electric Three-Wheelers Covered Under FAME II?
Yes, but mainly when registered for commercial or public-transport use. Eligible passenger and cargo electric three-wheelers were covered under these conditions.
Were Private Electric Cars Covered Under FAME II?
Private electric cars were usually not covered in the same way as private electric scooters. FAME II incentives for electric four-wheelers mainly applied to vehicles used for public transport or commercial purposes, worth keeping in mind if you're planning to compare EV insurance plans for a privately owned electric car today.
Were Electric Buses and Charging Stations Covered?
Yes. State and city transport organisations received government support for deploying approved electric buses, and FAME II also provided grants for approved public EV charging stations in cities and along important transport routes.
Who Was Eligible for the FAME II Subsidy?
Eligibility depended on three things: the buyer, the vehicle, and the manufacturer.
What Were the Buyer Eligibility Conditions?
The buyer had to:
- Purchase a new and eligible electric vehicle
- Complete the purchase and registration within the scheme period
- Meet commercial or public-use conditions where applicable
- Buy the vehicle through an authorised dealer
- Complete the required registration and verification process
Private ownership was allowed for eligible electric two-wheelers, while commercial-use conditions mainly applied to electric three-wheelers and four-wheelers - this ties directly into the current road tax rules for electric vehicles, since registration type affects tax treatment too.
What Were the Vehicle Eligibility Conditions?
The vehicle had to:
- Be approved under FAME II
- Use an approved advanced battery
- Meet prescribed range, speed, and performance standards
- Remain below the applicable ex-factory price limit
- Meet Central Motor Vehicle Rules and safety requirements
- Be certified by an approved testing agency
Approval applied to the exact model and variant not simply to the brand.
What Were the OEM (Manufacturer) Eligibility Conditions?
The OEM had to:
- Be registered under FAME II
- Get the vehicle model officially certified
- Follow applicable localisation requirements
- Comply with the Phased Manufacturing Programme
- Provide the required warranty and after-sales support
- Register eligible vehicle sales on the official platform
Only approved models from compliant OEMs could receive the subsidy.
How Much Subsidy Was Available Under FAME II?
The FAME II subsidy was calculated using the vehicle's eligible battery capacity in kWh, with a percentage cap based on the vehicle's price.
The final subsidy was limited by:
- Eligible battery capacity
- Subsidy rate per kWh
- Vehicle category
- Ex-factory price
- Applicable percentage cap
- Date of purchase
- Availability of scheme funds
The lower of the two permitted amounts was applied whenever the battery-based calculation exceeded the price cap.
How Was the FAME II Subsidy Calculated? (With Example)
Suppose an electric two-wheeler had:
- Eligible battery capacity: 3 kWh
- Ex-factory price: ₹1,20,000
- Subsidy rate: ₹10,000 per kWh
- Price cap: 15%
Battery-based amount: 3 kWh × ₹10,000 = ₹30,000 Price-based limit: 15% of ₹1,20,000 = ₹18,000
So the eligible subsidy would be limited to ₹18,000, since it was lower than the battery-based amount. You can run your own numbers using an EV on-road price calculator to see how similar caps affect current EV pricing.
What Was the Electric Two-Wheeler Subsidy Rate Timeline?
| PeriodSubsidy Rate | |
| Original rate | ₹10,000 per kWh, capped at 20% of vehicle cost |
| From 11 June 2021 | ₹15,000 per kWh, capped at 40% of vehicle cost |
| From 1 June 2023 | ₹10,000 per kWh, capped at 15% of vehicle cost |
During the final stage of FAME II, the electric two-wheeler subsidy stood at ₹10,000 per kWh, limited to 15% of the vehicle cost.
How Did Buyers Actually Receive the FAME II Subsidy Amount?
Buyers usually did not get a separate payment into their bank account. The authorised dealer or OEM reduced the subsidy amount directly from the purchase price, and the OEM then claimed reimbursement from the government.
What Were the Key Benefits of the FAME II Scheme?
Benefits for EV Buyers
- Reduced upfront purchase price
- More affordable eligible electric two-wheelers
- Lower prices on eligible commercial EVs
- Greater availability of certified EV models
- Better warranty and safety standards
Benefits for Public Transport
- Electric buses for city and state transport
- Electric taxis and fleet vehicles
- Commercial electric three-wheelers
- Cleaner last-mile transport
- Lower emissions from high-usage vehicles
Benefits for the EV Industry and Charging Infrastructure
- Higher demand for EVs
- Investment in EV manufacturing
- Domestic battery and component production
- Expansion of testing and certification systems
- Growth of EV service and after-sales networks
- More public EV charging stations and reduced range anxiety
If you're relying on your EV for daily commutes, it's worth bookmarking a guide to EV charging stations near you and double-checking your FASTag and payment setup before any long drive.
Is the FAME II Subsidy Still Available in 2026?
No. FAME II ended on 31 March 2024. Vehicles sold or registered after the scheme deadline could not receive a new FAME II incentive.
Some reimbursements, electric-bus deployments, or charging projects continued after the deadline but this did not mean the buyer subsidy itself was still available.
What Replaced FAME II? (EMPS 2024 and PM E-DRIVE)
The Electric Mobility Promotion Scheme 2024 (EMPS 2024) temporarily followed FAME II from 1 April 2024 to 30 September 2024.
It was then followed by the PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme, commonly called PM E-DRIVE.
What Are the Current PM E-DRIVE Deadlines in 2026?
PM E-DRIVE has different rates, categories, and deadlines from FAME II. As of 28 July 2026, the official portal lists:
- 31 July 2026 as the terminal date for registered electric two-wheelers
- 31 March 2028 for registered e-rickshaws and e-carts
- The electric three-wheeler L5 category closed on 26 December 2025
Other parts of PM E-DRIVE including support for electric buses, trucks, and charging infrastructure continue until 31 March 2028, subject to scheme conditions and available funds.
Buyers should always check the full guide to the PM E-DRIVE scheme 2026 instead of relying on old FAME II subsidy figures.
What Did FAME II Actually Achieve? (Key Numbers)
FAME II helped create the foundation for wider EV adoption in India. As of 30 June 2026, official data reported:
- Approximately 16.72 lakh supported electric two-wheelers, three-wheelers, and four-wheelers
- 5,197 electric buses deployed under the scheme
The programme also funded public EV charging-station projects and helped expand EV manufacturing, testing, and certification systems.
What Should EV Buyers Check Before Booking an EV Today?
Before booking an electric vehicle, check the following:
- Which Central Government EV scheme is currently active
- Whether the exact model and variant are officially approved
- Whether the quoted price already includes the subsidy
- Whether the subsidy is shown separately in the quotation
- The vehicle's eligible battery capacity
- The applicable ex-factory price limit
- Whether commercial registration is required
- Available state-wise EV subsidy schemes
- Road-tax and registration-fee benefits
- The final registration deadline
Ask the dealer to provide every promised subsidy and benefit in writing before making the booking and while you're at it, it only takes a minute to get an instant bike insurance or car insurance quote so you know your total on-road cost upfront.