India's Electric Vehicle Subsidy Scheme: Progress and Enhancements

The Indian government's FAME-II Scheme has disbursed a total of é 6,559 crore as of 31st March 2025, benefiting 14,28,882 two-wheelers, 1,64,718 three-wheelers, and 22,615 four-wheelers. To address safety concerns related to electric vehicle battery fires, the government has implemented measures including notification of Construction and Functional Safety requirements for electric power train vehicles. The Ministry of Road Transport & Highways has also notified amendments to the Automotive Industry Standards (AIS) to enhance standards and technical requirements for EV batteries and its components.

Key Takeaways:

• As of 31st March 2025, the FAME-II Scheme has disbursed a total of é 6,559 crore, with 14,28,882 two-wheelers, 1,64,718 three-wheelers, and 22,615 four-wheelers receiving subsidies.
• The government has implemented Construction and Functional Safety requirements for electric power train vehicles to address safety concerns related to electric vehicle battery fires.
• The Ministry of Road Transport & Highways has notified amendments to the Automotive Industry Standards (AIS) to enhance standards and technical requirements for EV batteries and its components.
• The EMPS 2024 was implemented with an outlay of é 778 crore for a period of six months from 1st April 2024 to 30th September 2024.
• The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme was notified on 29th September 2024 with an outlay of é 10,900 crore, up to 31st March 2026.
• The EMPS 2024 has been subsumed under the PM E-DRIVE Scheme, providing demand incentive for e-2W, e-3W, e-trucks, and e-ambulances, as well as grant for e-buses and upgradation of testing agencies.

Statistics:

• Total amount disbursed under FAME-II Scheme: é 6,559 crore as of 31st March 2025.
• Number of two-wheelers, three-wheelers, and four-wheelers benefited from the FAME-II Scheme: 14,28,882, 1,64,718, and 22,615 respectively.
• Dates of implementation of EMPS 2024 and PM E-DRIVE Scheme: 1st April 2024 to 30th September 2024, and 1st April 2026 to 31st March 2026 respectively.
• Outlays of EMPS 2024 and PM E-DRIVE Scheme: é 778 crore and é 10,900 crore respectively.

Sources:

• Press Information Bureau, Government of India, dated 5th August 2025.
• Ministry of Road Transport & Highways (MoRTH), vide S.O. 5419(E) dated 27th December 2021.
• MoRTH, vide S.O. 4567 (E) dated 28th September 2022.
• MoRTH, vide G.S.R. 888 (E) dated 19th December 2022.
• MoRTH, vide G.S.R. 721(E) dated 21st November 2024.