The phase II of Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) scheme was launched by the Central Government in 2019. The scheme aims to increase the demand for Electric Vehicles across the country.
Under this scheme, the Government allotted Rs 10,000 crore for three years. The scheme was extended till March 31, 2024. Recently, the Government said that total outlay under FAME-II has been enhanced to Rs 11,500 crore.
Recently, some reports claimed the scheme has been extended temporarily for four months till July 31. However, the Government denied the reports of extension.
Fame-II scheme provides incentives to buyers of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles.
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5 things customers should know
- Cost-effective: The Electric Vehicles FAME II subsidy tackles the cost barrier associated with electric vehicles by providing financial incentives. These incentives make electric vehicles more affordable for the general public, fostering widespread adoption and contributing to reducing the overall cost of ownership.
- Charging infrastructure: FAME-II assists in developing charging infrastructure, addressing a major issue for EV manufacturers. This initiative benefits customers by ensuring easier access to charging stations.
- Increase in demand: The scheme aims to boost demand for EVs due to a reduction in associated costs. FAME-II aims to generate demand by way of supporting 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers.
- Technological advancement: The FAME II subsidy stimulates research and development in the electric vehicle sector by offering incentives. This drives technological advancements, encouraging manufacturers to innovate and enhance the efficiency, range, and overall performance of electric vehicles.
- Environmental Protection: The FAME II subsidy aims to reduce costs to encourage more people to adopt EV vehicles, ultimately aiding in environmental conservation.
Under FAME-I, about 2.78 lakh pure EVs were supported with total demand incentives of Rs 343 crore. The EV penetration in India is 6.3% currently, compared to 4.8 percent in 2022. In 2024, EV sales witnessed an increase of over 45%.Total EV registration in 2023 was 1.5 million units.
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