For quite some time, there has been a buzz around the EV industry regarding the FAME II (Faster Adoption and Manufacturing of Electric Vehicles) subsidy, which is about to come to an end by 31st March 2024. While EV enthusiasts were eagerly waiting for FAME III to be released, the government has announced an additional ₹1,500 Cr in the second phase of the FAME-II program and with this new addition, now on the purchase of a three-wheeler electric vehicle, you can save up to ₹1.1L which is one of the highest subsidies so far.
How to avail FAME Subsidy?
To avail this subsidy, EV buyers do not have to put in any effort, as it has been added to the ex-showroom price of the vehicle. So, the quotation you receive from any EV dealer will include the subsidy. However, as an informed buyer, we always suggest checking the quotation and the breakup of the price so that you can be assured of getting the subsidy benefits.
FAME-II Overview:
The Ministry of Heavy Industries introduced FAME-II as a five-year scheme starting from April 1, 2019, with a focus on promoting the electrification of public and shared transportation. The primary objectives include providing demand incentives for 7,090 eBuses, 5 lahks e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars, and 10 lahks e-2 Wheelers. The scheme also prioritizes the development of charging infrastructure.
Extended Allocations and How Will It Impact Your EV Purchase
The approved funds will be utilized for subsidies applicable to electric all two, three, and four-wheelers, continuing until March 31, 2024, or until the allocated funds are exhausted—whichever comes first. The revised scheme outlay now stands at INR 11,500 Cr, an increase from the initial INR 10,000 Cr. Here is how the allocated fund is being distributed amongst different categories:
Category | Revised outlay (Rs. Crore) |
e-2W | 5311 |
e-3W | 987 |
e-4W | 750 |
Total for Subsidies (A) | 7048 |
e-Buses | 3209 |
EV PCS | 839 |
Grants for the creation of capital assets (B) | 4048 |
Others (C) | 404 |
Total (A+B+C) | 11500 |
As seen above, every EV category has been allocated a certain amount of funds. If you are buying an electric three-wheeler before 31st March, you will get a subsidy of up to INR 1.1 lakhs which is one of the highest subsidies so far!
Current Status
As of February 7, 2024, electric vehicle makers had sold 13,63,266 electric vehicles under FAME-II, for a total of INR 5,854 Cr. Union Minister Krishan Pal Gurjar gave the Lok Sabha an update that showed the scheme's effects on the market. Source
Conclusion:
The additional funding for FAME-II signifies the government's commitment to promoting sustainable and eco-friendly transportation in India. Hence, this stands out as your last opportunity to get the maximum benefit from this scheme. We at Turno have simplified your commercial EV purchase by providing all facilities in one place. From vehicle selection to financing to the resale of the vehicle, we offer a comprehensive package for EV buyers.
To learn more about government incentives on EVs or to schedule a test drive of load/passenger three-wheeler EVs, please contact EV experts at Turno.
