In order to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same, Department of Heavy Industry is implementing FAME-India Scheme.

FAME II Scheme: Features

In the Phase-II, the Scheme proposes to give a push to electric vehicles (EVs) in public transport and seeks to encourage adoption of EVs by way of market creation and demand aggregation.

For electric buses, demand incentives on operational expenditure will be delivered through State/city transport corporation (STUs).

  • 3W and 4W segment incentives will be applicable mainly to vehicles used for public transport or those who are registered for commercial purposes.
  • The incentives will be offered by the Government for electric buses, three-wheelers and four-wheelers to be used for commercial purposes.
  • In the scheme Plug-in hybrid vehicles with sizeable lithium-ion battery and electric motor will also be included.
  • It will offer incentives to manufacturers, who invest in developing electric vehicles and its components, including lithium-ion batteries and electric motors.

The draft scheme envisages the holistic growth of EV industry, including:

  • Providing for charging infrastructure
  • Research and development of EV technologies
  • Push towards greater indigenization.
  • Under Demand Creation focus area, the purchaser of electric and hybrid vehicles is given an upfront reduction in purchase price by the dealer at the time of purchase of EVs.

100 % FDI by automatic route is permitted in the automobile sector.

Further, automobile sector is in deregulated sector and both private sector and public sector are free to carry out investment in the automobile sector, including for manufacturing of Electric Vehicles and E-Buses.


  • Controlling city air pollution issues.
  • Security of fuel especially with rising demand of petroleum fuel and increasing volatility in Middle East.
  • Health issues due to particulate matter exhaust in fuel engine.
  • Meeting the promises made in Paris Climate Conference and Sustainable Development Goals

FAME-India Scheme: 

Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India for implementation was started from 1st April 2015, with the objective to support hybrid/electric vehicles market development and Manufacturing eco-system. It is the part of the National Electric Mobility Mission Plan.

The scheme has 4 focus areas

  1. Technology development
  2. Demand Creation
  3. Pilot Projects and
  4. Charging Infrastructure.

The phase-I of the scheme was implemented for a period of 2 years i.e. FY 2015-16 and FY 2016-17 commencing from 1st April 2015.

The FAME India Scheme is aimed at incentivizing all vehicle segments i.e.

  1. 2 Wheeler,
  2. 3 Wheeler Auto,
  3. Passenger 4 Wheeler Vehicle,
  4. Light Commercial Vehicles and Buses.


The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles.

Under this scheme, about 99000 hybrid/electric vehicles (EVs) have been given direct support by way of demand incentives since the launch on 1st April 2015.

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