FAME Scheme 2025

What is the FAME Scheme?

The FAME scheme was launched in 2015 to support electric and hybrid vehicles in India. It aims to reduce pollution, cut down oil imports, and make the environment cleaner by encouraging people to use electric vehicles (EVs).

FAME Scheme – India’s Push for Electric Vehicles

The FAME Scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) is an important program by the Indian government to promote electric mobility. In 2025, the scheme continues to play a big role in encouraging people and industries to switch to eco-friendly vehicles.

Objectives of the FAME Scheme

The main goals of the FAME scheme are:

  1. Encourage the use of electric and hybrid vehicles
  2. Support local manufacturing of EV components
  3. Reduce air pollution and carbon emissions
  4. Improve EV charging infrastructure

Features of FAME India Scheme 2025

In 2025, the FAME scheme (Phase 2 and beyond) includes:

  1. Subsidies for electric 2-wheelers, 3-wheelers, 4-wheelers, and buses
  2. Incentives for vehicle buyers based on battery capacity (₹ per kWh)
  3. Support for setting up charging stations across cities and highways
  4. Focus on public transport and fleet electrification

How FAME Benefits Buyers and Manufacturers

For Buyers:

  1. Lower upfront cost of electric vehicles
  2. Government subsidies reduce vehicle prices
  3. Better access to EV infrastructure

For Manufacturers:

  1. Support for developing EV tech in India
  2. Boost for domestic component suppliers
  3. Opportunities to scale up EV production

FAME Phase 1 vs Phase 2 vs Phase 3

Phase

Duration

Focus

Phase 1

2015–2019

Pilot support, basic subsidies

Phase 2

2019–March 2024

Large-scale support for public transport

Phase 3

2024–2026

Extended focus on 2W/3W, buses & infra

In 2025, the scheme is part of FAME 3, which adds more focus on electric two-wheelers, small commercial EVs, and expanding EV infrastructure.

Eligibility and Incentives Under FAME

To get benefits under FAME:

  1. Vehicles must meet speed, range, and battery criteria
  2. Models should be approved under FAME by the Department of Heavy Industries
  3. Incentives depend on the size of the battery (₹10,000 per kWh for some categories)

Impact of FAME on India's EV Market

Thanks to FAME, India has seen a major rise in electric two-wheelers and buses. Many startups and established automakers have launched EVs at competitive prices. FAME has helped:

  1. Create more jobs in the EV sector
  2. Improve air quality in urban areas
  3. Boost investor interest in green technology

Challenges and Criticisms

While FAME has helped the EV ecosystem, there are still challenges:

  1. Slow rollout of public charging stations
  2. Limited awareness in rural areas
  3. Delays in subsidy disbursement for manufacturers
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