India has disbursed incentives worth Rs 6,558 crore to more than 16 lakh electric vehicles under the FAME-II scheme, the government said on Wednesday. The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II) program aims to make electric vehicles more affordable and support cleaner transport. It was launched in April 2019 with a planned outlay of Rs 10,000 crore and later expanded.
A government reply to parliament noted that 16,16,215 EVs have received demand incentives as of January 26, 2026. Grants have also been provided for e-bus deployment and public charging infrastructure. Officials said the payments include support for electric two-, three- and four-wheelers. Under FAME-II, buyers of certain categories of electric vehicles get subsidies tied to battery capacity or vehicle cost when they buy new EVs.
“The incentive drive has lowered upfront costs and boosted EV adoption,” said one industry analyst. Sales of electric two-wheelers surged earlier under the scheme’s demand-incentive model.
Importantly, the scheme also funded 9,159 EV public charging stations. This follows government efforts to reduce barriers to EV use beyond vehicle purchases.
Despite progress, the FAME-II scheme technically ended on March 31, 2024. Its core goals now continue through related programs like the Electric Mobility Promotion Scheme (EMPS) and new initiatives under “PM E-DRIVE.”
Clean energy advocates say consistent policy support is key. They argue that predictable incentives and robust infrastructure could further accelerate India’s shift to zero-emission transport. The government’s continued support signals that EV adoption remains a strategic part of India’s climate and industrial agenda.
Reference- PIB release, FAME II website, Autocar India, cleartax website, BioEnergy Times