FAME-II Boosts Electric Vehicle Adoption in India
The Indian government’s FAME-II scheme has significantly accelerated the adoption of electric vehicles (EVs) across the country. With the scheme’s conclusion on March 31, 2024, it has facilitated a remarkable transformation in the EV market, providing financial incentives that made hybrid and electric vehicles more accessible to consumers. Total demand incentives of ₹6,559 crore were provided to original equipment manufacturers (OEMs), effectively lowering the purchase price for buyers and encouraging wider acceptance of electric mobility.
Recent data from major oil marketing companies, including IOCL, BPCL, and HPCL, reveals that Karnataka has witnessed the approval and establishment of 751 EV charging stations under the FAME-II initiative. This development is crucial in ensuring that infrastructure keeps pace with the growing demand for electric vehicles.
Thanks to the FAME-II scheme, the penetration of electric vehicles in the Indian market surged from a mere 0.71% in the financial year 2019-20 to an impressive 7.50% by the financial year 2024-25. As of March 31, 2025, the scheme has supported sales of over 1.6 million electric vehicles and sanctioned 6,862 electric buses for deployment throughout the country.
Furthermore, the FAME-II initiative has emphasized domestic manufacturing through its Phased Manufacturing Programme (PMP). This program mandates the localization of essential EV components, which has not only strengthened India’s domestic EV ecosystem but has also attracted significant investments in manufacturing and fostered the development of a robust local supply chain. These strides in manufacturing are expected to create numerous job opportunities in both direct and indirect capacities.
These insights were shared by Shri Bhupathiraju Srinivasa Varma, the Minister of State for Heavy Industries, in a written response during a recent session in the Rajya Sabha. The achievements and ongoing efforts under the FAME-II scheme underline the Indian government’s commitment to promoting electric mobility and a sustainable transportation future.
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