FAME-III: New Milestone for Electric Mobility in India

India is aggressively advancing its electric vehicle (EV) ecosystem, and the launch of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme marks a significant step in this journey. With an outlay of Rs. 10,900 crore over two years (April 2024 to March 2026), the scheme aims to promote electric mobility and reduce the country’s dependence on fossil fuels. The Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme is gearing up for its third phase (FAME-III), expected to roll out within the next two months. The government is determined to ensure that India becomes a global leader in electric mobility, with a vision of a ‘Viksit Bharat.’

Key Highlights of the PM E-DRIVE Scheme

FAME I (2015-2020)

• Launched with an initial outlay of Rs. 900 crore.
• Focused on providing demand incentives to EV buyers.
• Supported 278,000 pure EVs with a total incentive of Rs. 343 crore.

FAME II (2020-2024)

• Increased outlay of Rs. 10,000 crore, later revised to Rs. 11,500 crore to meet growing demand.
• Supported over 1.6 million vehicles and witnessed an increase in the number of EV players from 124 to 731 between FY15 and FY24.
• Led to a significant rise in EV sales, from less than 7,000 units in FY15 to 1.5 million units in FY24, making up 6.8% of total automobile sales.

FAME-III (Upcoming Phase)

• Set to launch in the next two months, FAME-III will continue India’s commitment to electric mobility, with a focus on expanding EV adoption across various vehicle segments, including heavy-duty trucks.

The Road Ahead

• Skilled Workforce: Addressing the skill gap for a future-ready EV workforce is crucial to sustain the momentum of the EV revolution.
• Industry Collaboration: The government is calling upon all stakeholders to join forces to make India a global leader in electric mobility.
• Infrastructure Expansion: Strengthening EV infrastructure, particularly charging stations, and encouraging innovation in EV-related technologies are key areas of focus.
• Policy Support: Continuous policy boosts will be aimed at driving innovation and investments in the EV sector.