FAME India / PM E-Drive ā EV Purchase Subsidy India
FAME India Phase 2 and PM E-Drive give subsidies on electric 2-wheelers, 3-wheelers, and buses. Subsidy is directly reduced from vehicle price at...
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What is FAME India Scheme?
FAME India (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India) is the Government of India's flagship scheme to subsidise the purchase of electric vehicles to make EVs more affordable and promote green mobility.
FAME Phase 2 (2019ā2024) has now transitioned to the PM E-Drive scheme (launched 2024), which continues EV subsidies with a broader mandate.
Key features:
- Subsidy is directly deducted from the vehicle's on-road price at the dealership ā no separate application needed from the buyer
- Covers electric 2-wheelers, 3-wheelers, buses, and charging infrastructure
- Dealers registered under FAME/PM E-Drive claim subsidy from government on buyer's behalf
Current EV Subsidies (PM E-Drive Scheme 2024)
Electric 2-Wheelers (Electric Scooters/Motorcycles)
| Category | Subsidy per vehicle |
|---|---|
| Electric 2-wheeler | ā¹10,000 (or ā¹5,000/kWh battery capacity, max ā¹15,000) |
PM E-Drive (2024): Enhanced subsidy of ā¹5,000/kWh of battery capacity for electric 2-wheelers. For a typical 3 kWh battery scooter, subsidy ā ā¹15,000.
Electric 3-Wheelers (E-Rickshaws, E-Autos)
- ā¹25,000āā¹50,000 per vehicle depending on category
- Priority to registered auto-rickshaw permit holders and public transport operators
State Additional Subsidies
Many states offer additional subsidies on top of central FAME/PM E-Drive:
| State | Additional EV Subsidy |
|---|---|
| Delhi | ā¹5,000/kWh battery (up to ā¹30,000 for 2-wheelers) |
| Maharashtra | ā¹5,000āā¹10,000 for 2-wheelers |
| Gujarat | ā¹20,000 for 2-wheelers |
| Rajasthan | ā¹10,000 for 2-wheelers |
| Uttar Pradesh | ā¹5,000āā¹10,000 additional |
Combined central + state subsidies can make an electric scooter ā¹20,000āā¹50,000 cheaper.
How to Get EV Subsidy ā No Separate Application Needed
The process is seamless ā as a buyer, you don't apply separately:
- Choose a FAME/PM E-Drive registered EV model from an authorized dealer
- The dealer shows you the net price after subsidy (subsidy already deducted from the vehicle price)
- You pay the net subsidised amount
- The dealer claims the subsidy from the government on your behalf
- You drive away with your subsidised EV
Check registered models: Go to fame2.heavyindustries.gov.in ā "Registered Models" to see which EV models are eligible for subsidy.
Eligibility for EV Subsidy
For individual buyers:
- Must be a citizen of India
- Purchasing an eligible EV model from a registered dealer
- No income limit for most categories
For commercial operators (3-wheelers, buses):
- Must have valid permit for commercial vehicle operation
- Priority to existing petrol/diesel operators transitioning to EVs
Top Electric 2-Wheeler Models Under Subsidy
Popular models eligible under FAME/PM E-Drive (check current year's list):
- Ola S1, Ather 450X, Hero Vida, TVS iQube, Bajaj Chetak
- Honda Activa Electric (new)
- Ather Rizta, Simple One, Ampere Magnus
Always confirm the model is currently eligible at fame2.heavyindustries.gov.in ā the list updates frequently.
Additional Benefits of EVs
Beyond FAME subsidy:
- Income Tax benefit: 80EEB deduction on interest on EV loan (up to ā¹1.5 lakh)
- Road tax exemption: Most states exempt EVs from road tax
- Lower fuel cost: ā¹1ā2 per km vs ā¹4ā6 per km for petrol
- Lower maintenance: No oil changes, simpler drivetrain
Frequently Asked Questions
Do I need to apply separately for FAME subsidy?
No ā the dealer handles everything. You pay the discounted price; the dealer claims subsidy from the government. Just ensure you are buying from a registered dealer and an eligible model.
Can I get FAME subsidy on second-hand EVs?
No ā FAME subsidies apply only to new vehicle purchases from authorized dealers.
I want to buy a Tata Nexon EV (electric car). Is there a subsidy?
FAME Phase 2 focused mainly on 2-wheelers, 3-wheelers, and public transport buses ā not private 4-wheel passenger cars (except specific commercial EV categories). Personal electric cars have limited central subsidies (state subsidies may exist).
What is the difference between FAME and PM E-Drive?
FAME Phase 2 ended in March 2024. PM E-Drive (approved September 2024, budget ā¹10,900 crore) is the successor scheme with extended and enhanced subsidies. Both work similarly for the buyer.
Is the subsidy directly applied at dealership or as cashback?
Directly applied at dealership ā you pay the reduced price upfront. There is no cashback to wait for.
Official Links
- FAME 2 / PM E-Drive: fame2.heavyindustries.gov.in
- Ministry of Heavy Industries: heavyindustries.gov.in
- Registered models list: fame2.heavyindustries.gov.in ā Registered Models
- Helpline: 011-23062805 (Ministry of Heavy Industries)
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