Government to launch FAME-III scheme within two months

The Indian government plans to roll out the third phase of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme within the next two months, according to H D Kumaraswamy, Minister of Heavy Industries. Speaking at an industry event in New Delhi, Kumaraswamy emphasized the government’s commitment to advancing India’s electric vehicle (EV) ecosystem, focusing on local manufacturing and sustainable growth.

The FAME scheme, initiated in 2015 with an initial outlay of approximately Rs 9 billion, was followed by FAME II, which saw an increased outlay of Rs 100 billion. These initiatives have significantly boosted the EV industry, increasing sales from less than 7,000 units in FY15 to 1.5 million units in FY24, representing 6.8% of all automobile sales. However, the industry experienced a slowdown after the conclusion of FAME II in March 2024.

Government data shows that FAME I supported around 278,000 pure EVs with Rs 3.43 billion in demand incentives, while FAME II benefited over 1.6 million vehicles. The subsidy outlay under FAME II was increased from Rs 100 billion to Rs 115 billion to meet demand until March 2024.

In April 2024, the government introduced the Electric Mobility Promotion Scheme (EMPS) with an initial outlay of Rs 5 billion, later increased to Rs 7.78 billion. This scheme, extended until the end of September, supports the purchase of electric two- and three-wheelers.

Moving forward, the focus will be on accelerating EV adoption across all segments, including heavy-duty trucks, strengthening the EV value chain, improving infrastructure, and offering policy support to encourage innovation and investment in electric mobility.