FAME III Subsidy 2026: How to Get EV Subsidy for Cars, Bikes & Buses in India

What is FAME III?

The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme is India's flagship program to accelerate EV adoption. FAME III, announced in 2024, builds on the success of FAME I and II with enhanced subsidies and broader coverage.

With a budget allocation of over ₹10,000 Crore, FAME III focuses on demand-side incentives for buyers, charging infrastructure development, and supporting domestic EV manufacturing.

FAME III Subsidy Amounts

Electric Two-Wheelers

Subsidy: Up to ₹10,000 per kWh of battery capacity
Maximum cap: ₹25,000 per vehicle
Effective price reduction: ₹15,000-₹25,000 on popular models
Eligible models: Must have minimum range of 80 km and top speed of 40 km/h

Electric Cars (Four-Wheelers)

Subsidy: Up to ₹10,000 per kWh of battery capacity
Maximum cap: ₹1,50,000 per vehicle (for cars priced under ₹25 Lakhs)
Eligible vehicles: Battery Electric Vehicles (BEVs) only — no hybrids
Price ceiling: Ex-showroom price must not exceed ₹25 Lakhs

Electric Buses

Subsidy: Up to ₹55 Lakhs per electric bus
Target: 14,028 electric buses across major Indian cities
Beneficiaries: State Transport Undertakings (STUs) and urban transport bodies

Electric Three-Wheelers

Subsidy: Up to ₹50,000 per vehicle
Focus: E-rickshaws and cargo three-wheelers for last-mile connectivity

How to Avail FAME III Subsidy

For Individual Buyers

The subsidy is applied directly at the point of sale — you don't need to apply separately. Here's how it works:

Choose an eligible EV from a FAME III-registered manufacturer
The dealer will show you the subsidized price (after FAME III deduction)
Complete the purchase — the manufacturer claims the subsidy from the government on your behalf
You receive the vehicle at the reduced price with no additional paperwork

Eligibility Criteria

Vehicle must be purchased from a FAME III-registered manufacturer
Battery must be sourced from an approved battery manufacturer (minimum 50% localization)
Vehicle must meet minimum performance specifications (range, speed, efficiency)
Buyer must provide Aadhaar-linked bank account for traceability

State-Level Top-up Subsidies

Many states offer additional subsidies on top of FAME III, making EVs even more affordable:

Delhi

Purchase incentive: Up to ₹30,000 for two-wheelers, ₹1,50,000 for four-wheelers
Road tax: 100% waiver
Registration: Free
Scrapping bonus: Additional ₹5,000 for scrapping old ICE vehicle

Maharashtra

Early bird incentive: Additional subsidy for early adopters
Road tax: Partial waiver based on vehicle category

Gujarat

Purchase subsidy: Up to ₹1,50,000 for four-wheelers
Road tax: 100% waiver for 5 years
Interest subvention: 5% on EV loans

Karnataka

Road tax: 100% waiver
Registration: Free for first 2 lakh EVs
Manufacturing incentives: Capital subsidy for EV factories in Karnataka

Tamil Nadu

Road tax: 100% waiver
Registration: Free
Charging infrastructure: State-funded public chargers at key locations

For a detailed state-wise breakdown, read our comprehensive guide: State-wise EV Subsidies in India 2026.

Total Savings: FAME III + State + Tax Benefits

When you combine all the benefits, an EV buyer can save ₹3-6 Lakhs on a mid-range electric car:

FAME III subsidy: Up to ₹1,50,000
State subsidy: Up to ₹1,50,000 (varies by state)
Road tax waiver: ₹1,00,000-₹2,50,000 (state-dependent)
GST savings: ~₹4,00,000 (5% vs 28%+cess, embedded in price)

Use our EV Savings Calculator to calculate the total benefits for your specific vehicle and state.

FAME III vs FAME II: What Changed?

Higher budget: FAME III has a larger allocation for wider reach
Broader coverage: Includes more vehicle categories and price ranges
Localization focus: Stricter domestic manufacturing requirements for batteries
Charging infrastructure: Dedicated allocation for public fast-charging networks
Fleet electrification: Special incentives for ride-hailing and delivery fleets

Charging Infrastructure Under FAME III

FAME III allocates funds for public charging infrastructure across India:

Fast chargers: DC fast chargers (50kW+) at every 25 km on national highways
City chargers: Public AC chargers at malls, offices, and parking facilities
Home charging: Standardized home charging solutions with smart metering
Solar + EV: Integrate rooftop solar with EV charging via PM-Surya Ghar Yojana