India’s EV subsidy landscape has transformed. The FAME II scheme has been replaced by the PM E-Drive (Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement) scheme with a total outlay of ₹10,900 crore over two years.
Key Changes from FAME II
| Feature | FAME II | PM E-Drive |
|---|---|---|
| Budget | ₹10,000 Cr | ₹10,900 Cr |
| Duration | 2019-2024 | 2024-2026 (extended to 2028) |
| Electric trucks | Not covered | Covered (₹500 Cr allocation) |
| Charging infra | ₹1,000 Cr | ₹2,000 Cr |
| Subsidy delivery | Post-purchase reimbursement | Upfront at point of sale |
2026 Subsidy Rates for Fleet Operators
Electric Three-Wheelers (Cargo)
- Subsidy rate: ₹2,500 per kWh
- Maximum subsidy: ₹12,500 per vehicle
- Price cap: 15% of ex-factory price
Charging Infrastructure Support
- 48,400 chargers for 2-wheelers and 3-wheelers
- 22,100 fast chargers for 4-wheelers
- ₹2,000 crore allocated for public charging network
How to Claim
The PM E-Drive scheme uses an Aadhaar-authenticated eVoucher system — subsidy is deducted upfront at the dealership. No paperwork. Fleet operators can combine central subsidies with state-level EV policies including 100% road tax exemption and additional capital subsidies.
Bottom Line
With central subsidies plus state incentives, EV acquisition costs are 25-35% lower than comparable ICE vehicles. For high-utilisation last-mile delivery fleets, the total cost of ownership advantage is now compelling.