The Heavy Industries Ministry has expanded financial support for the second phase of the Faster EV Adoption program by ₹1,500 crore taking the overall allocation to ₹11,500 crore until the current phase ends March 2024. Nearly ₹5,800 crore has been disbursed already on over 13 lakh EV sales so far as uptake accelerates.
This means, that the Govt subsidies for buying electric cars, electric two and three wheelers will stop after March 31, 2024. In case the allocated funds under FAME 2 scheme finishes before March 31, then also the subsidies will stop.
In the recent budget, ₹2,670 crore got earmarked as well for 2024-25 indicating likely extension of FAME II benefits supporting India’s electric mobility shift – a key decarbonization goal that consumer incentives are catalyzing.
13.41 Lakh EVs Subsidized So Far
Official data showed that until January 2023, FAME II released ₹5,790 crore sponsoring 11.9 lakh electric two wheelers, 1.4 lakh three wheelers and 17,000 electric cars under the program launched originally in 2019 with ₹10,000 crore corpus for 3 years.
A portion also went towards securing 6,800 electric buses for intra-city operations and 7,400 EV charging stations installation indicating rounded ecosystem support for next-gen mobility transition through progressive policy pushes.