TL;DR
The Indian government is considering extending the FAME-III subsidy program to further boost the adoption of electric two-wheelers nationwide.
The Indian government is reportedly evaluating proposals to extend the FAME-III (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidy program, a move aimed at further accelerating the adoption of electric two-wheelers across the country. Discussions are underway within the Ministry of Heavy Industries regarding potential enhancements and extensions to the current FAME scheme, which has played a crucial role in making EVs more affordable. Industry stakeholders have been advocating for continued government support, citing the initial success of FAME-II and the need for sustained incentives to overcome price parity challenges with conventional ICE vehicles. An extension or a revamped FAME-III policy could significantly impact sales trajectories for electric scooters and motorcycles, fostering greater consumer confidence and encouraging manufacturers to invest further in localization and innovation. A formal announcement is expected in the coming weeks following inter-ministerial consultations.