All you need to know about Electric Vehicles FAME II subsidy

All You Need to Know About Electric Vehicles Fame II Subsidy

Electric Vehicles FAME II subsidy has now transitioned into the PM E-DRIVE scheme, which officially replaced the older FAME II subsidy. If you are looking for the best electric scooter in India, understanding how these government incentives work can save you thousands of rupees on your purchase.

From high-speed e-scooters to family-friendly scooties, let’s look at how you can get a subsidy on an electric scooter today under the evolving Electric Vehicles support programs.

What is the FAME 2 Subsidy (and its 2026 Successor)?

The Electric Vehicles FAME II subsidy (Faster Adoption and Manufacturing of Electric Vehicles) was a government program designed to make EVs cheaper. While the FAME II phase technically ended, the Indian government has launched the PM E-DRIVE scheme to continue the support.

In 2026, this new scheme provides a direct electric scooter subsidy to help you switch from petrol to electric. For the average buyer, this means the e-scooter you see in the showroom already has the discount applied to its price tag.

What are the Benefits of the Electric Vehicles Subsidy?

  • Instant Price Drop

    The primary benefit of the Fame 2 subsidy on electric scooter models (and now PM E-DRIVE) is a lower upfront cost.

  • Lower Running Costs

    When you buy a subsidised e-scooter, you aren't just saving on the purchase; you are saving ₹2.50 per km compared to petrol.

  • Environmental Impact

    Every electric scooter on the road helps reduce the thick smog in our cities.

  • Extra State Savings

    Many states, like Delhi or Gujarat, offer an additional electric scooter subsidy on top of the central government's help.

Electric Vehicles FAME II subsidy

Eligibility for the Electric Vehicles Subsidy

To get an e-bike government subsidy, you must follow these simple rules:

  • Approved Models

    You must buy a vehicle from the official Fame 2 subsidy vehicle list (now updated under PM E-DRIVE).

  • Battery Tech

    The scooter must use an "Advanced Battery" like Lithium-ion or LiFePO4.

  • Speed & Range

    Only high-speed scooters (usually those requiring a license) qualify for the full subsidy.

  • Aadhaar Verification

    In 2026, subsidies are linked to your Aadhaar to ensure one benefit per person.

Types of EVs That Qualify

  • Electric Two-Wheelers: This is the most popular category for the e-scooter subsidy.

  • Electric Three-Wheelers: Used mostly for commercial goods and rickshaws.

  • Electric Buses: Helping our cities move toward green public transport.

  • Electric Buses and Commercial Vehicles

    Used in public transport fleets to reduce carbon footprints.

Limitations of the FAME II Subsidy

While impactful, the Electric Vehicles FAME II subsidy comes with a few caveats:

  • Limited Timeframe

    It’s a time-bound initiative and may not continue indefinitely.

  • Geographical Reach

    The availability of subsidies may vary depending on the state and local infrastructure.

  • Budget Limitations

    Not all eligible vehicles receive the subsidy if the allocated fund is exhausted for the period.

Despite these limitations, the benefits far outweigh the concerns, especially when considering the long-term environmental and financial savings.
Electric Vehicles FAME II subsidy

Did You Know?

Apart From Zero Emissions, Electric Scooters Also Run on Low Quantities of Electricity.

Frequently Asked Questions

How much is the Fame 2 subsidy on electric scooter models?

Under the current 2026 guidelines, the subsidy is generally calculated at ₹2,500 per kWh of battery capacity, usually capped at 15% of the scooter’s cost.

Is there an e-bike government subsidy for low-speed scooters?

Most low-speed scooters (top speed below 25 km/h) do not require a license and therefore do not qualify under the Electric Vehicles FAME II subsidy guidelines introduced for eligible high-speed models. It is best to choose a high-speed model for maximum savings.

Do I need to fill out forms to get the electric scooter subsidy?

No! The Fame 2 subsidy and PM E-DRIVE benefits are usually deducted by the dealer directly from your bill. You just need to provide your ID and Aadhaar.

As we move forward, choosing an EV supported under the fame subsidy isn't just a trend, it's a responsible step into the future.

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