Aiming to boost India’s electric vehicle market share and infrastructure, a parliamentary Standing Committee urges the government to include EVs in the FAME-III scheme.
The Standing Committee on Industry of the Parliament has recommended that electric vehicles (EVs) be included in the upcoming FAME-III scheme to help expand their market share.
According to a report by the Financial Express, this is seen as a significant step to support the Electric Mobility Mission and diversify the range of vehicles covered under the scheme.
The committee also proposed extending the current FAME-II scheme for at least three years to make it more inclusive and effective. This extension should be carried out in consultation with industry stakeholders. The government is expected to review the committee’s recommendations and engage in further discussions to refine the policy framework for electric mobility.
The call for expansion comes as passenger electric vehicles currently hold only 2% of the market share. The automotive industry has argued that including passenger EVs in the PM E-Drive scheme would help boost adoption. Overall, the market share for EVs in India surpassed 7% in 2024.
Furthermore, the committee also expressed concerns about the rationale behind the introduction of the PM-E Drive Scheme, given the similarities with FAME-I and FAME-II, which have already achieved significant success. The committee highlighted that the new scheme might cause confusion, as it overlaps in objectives, budget, and components with the existing ones.
Under the FAME-II scheme, which has been active since April 2019, the government allocated ₹115 billion to incentivise the sale of electric vehicles, including electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), and four-wheelers (e-4Ws).
As of March 2025, over 1.6 million EVs have been incentivised under this scheme. The scheme also provided grants for deploying electric buses and setting up public charging stations (EVPCS). To date, 6862 e-buses have been sanctioned for intra-city operations.
The Ministry of Heavy Industries (MHI) has also made investments to support the EV ecosystem. This includes sanctioning ₹8 billion to three oil marketing companies for setting up over 7400 public charging stations and additional funding for upgrading existing stations.
Additionally, there are other government schemes as well, including the Production-Linked Incentive (PLI) scheme for the automotive sector and the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, both aimed at boosting manufacturing capabilities in the country.
