Government EV Policy
India 2026

Replaces FAME II — the flagship central government EV subsidy scheme providing demand-side incentives for electric 2-wheelers, 3-wheelers, e-buses, and charging infrastructure.

• ₹10,000 per kWh subsidy for electric 2-wheelers (max ₹10,000 per vehicle)
• ₹50,000 per vehicle for electric 3-wheelers
• ₹1.9 crore per e-bus for state transport undertakings
• ₹800 crore for installing 72,000+ fast chargers on highways
• ₹500 crore for EV charging in apartments and workplaces

Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles — the predecessor scheme that kickstarted India's EV revolution, subsidising 2-wheelers, 3-wheelers, 4-wheelers and buses.

• Subsidised over 15 lakh electric 2-wheelers
• ₹10,000 per kWh for 4-wheelers (discontinued 2023)
• Funded 7,432 public EV charging stations
• Supported BEST, DTC, BMTC e-bus fleets

Production Linked Incentive scheme gives manufacturers 13–18% incentive on incremental sales of EV components and advanced chemistry batteries manufactured in India.

• 18% incentive on Champion OEM vehicles (first 3 years)
• 13% incentive on Component Champion vehicles
• Covers EV motors, battery packs, power electronics
• Attracting global EV investment to India

India-specific battery manufacturing incentive to reduce EV battery import dependence and drive local battery gigafactory development.

• Target: 50 GWh domestic battery manufacturing by 2030
• Incentive: ₹20/kWh to ₹45/kWh based on performance
• Maruti, Tata, Hyundai winning bids
• Expected to reduce battery cost by 30% by 2027