India’s journey towards a sustainable and eco-friendly transportation system has been marked by the implementation of the Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles in India (FAME India) Scheme. Launched by the Government of India in 2015, this ambitious program aims to promote the adoption of electric and hybrid vehicles, reduce the dependency on fossil fuels, and mitigate the adverse effects of vehicular pollution.

Watch Video

Overview of the FAME India Scheme

The FAME India Scheme, which stands for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India, is a significant initiative under the broader National Electric Mobility Mission Plan (NEMMP) 2020. Launched by the Government of India, the scheme aims to promote the adoption of electric vehicles (EVs) and hybrid vehicles in the country. This move is driven by the dual need to address the environmental challenges posed by vehicular emissions and reduce the nation’s dependency on fossil fuels.

Objectives of the FAME India Scheme:

1. Reduction of Vehicular Emissions:
   • India has been grappling with severe air pollution problems, particularly in urban areas. A significant contributor to this pollution is the transportation sector, which relies heavily on internal combustion engine (ICE) vehicles that emit harmful pollutants. The FAME India Scheme is designed to mitigate this issue by encouraging the shift from ICE vehicles to cleaner, greener electric and hybrid vehicles.
2. Decrease in Fossil Fuel Consumption:
   • India’s growing demand for fossil fuels has not only strained its economy due to the high cost of imports but has also made the country vulnerable to global oil market fluctuations. By promoting EVs and hybrid vehicles, the scheme aims to reduce the nation’s reliance on imported fossil fuels, thus enhancing energy security and contributing to economic stability.

Key Components of the FAME India Scheme:

1. Incentives for EV Buyers:
   • One of the core strategies of the scheme is to make electric vehicles more affordable for consumers. This is achieved through direct financial incentives that reduce the upfront cost of EVs. These incentives vary depending on the type and category of the vehicle, with higher subsidies for two-wheelers, three-wheelers, and public transportation vehicles.
2. Support for EV Manufacturers:
   • The scheme also provides incentives to manufacturers to produce electric vehicles and related components within India. This includes subsidies for setting up manufacturing plants, developing advanced batteries, and other EV technologies. By bolstering domestic manufacturing, the scheme aims to create a robust EV supply chain in India, reduce costs, and foster innovation in the sector.
3. Development of Charging Infrastructure:
   • A significant barrier to the widespread adoption of electric vehicles is the lack of adequate charging infrastructure. The FAME India Scheme addresses this by funding the installation of charging stations across the country, particularly in urban centers, highways, and public transportation hubs. This initiative aims to alleviate range anxiety among potential EV buyers and make electric mobility more convenient.
4. Focus on Public and Shared Transportation:
   • Recognizing the importance of public transportation in reducing overall emissions, the scheme places a strong emphasis on electrifying buses, rickshaws, and other forms of public and shared transport. By providing subsidies for electric buses and public charging stations, the scheme seeks to reduce the carbon footprint of public transportation and encourage mass adoption of electric vehicles.

Phases of the FAME India Scheme:

1. FAME India Phase I (2015-2019):
   • The first phase of the scheme focused on creating awareness and initial adoption of electric and hybrid vehicles. It provided financial incentives for the purchase of EVs and supported pilot projects for EV infrastructure. The scheme also initiated the development of charging stations in select cities.
2. FAME India Phase II (2019-present):
   • The second phase, with a larger budget and broader scope, builds on the successes of the first phase. It significantly increases the focus on public transportation electrification, the establishment of widespread charging infrastructure, and the promotion of domestic manufacturing of EV components. Phase II also targets the electrification of government and corporate fleets, as well as last-mile connectivity solutions.

Impact and Future Outlook:

• Environmental Benefits:
  • The FAME India Scheme is expected to play a crucial role in reducing greenhouse gas emissions, improving air quality, and supporting India’s commitments under the Paris Agreement on climate change.
• Economic Growth:
  • By fostering a domestic EV industry, the scheme is likely to create new jobs, attract investments, and position India as a global hub for electric mobility.
• Consumer Adoption:
  • With increasing consumer awareness and improving infrastructure, the adoption of electric vehicles in India is expected to grow rapidly, contributing to the scheme’s long-term success.

The scheme is divided into two phases:

The FAME India Scheme, designed to accelerate the adoption of electric and hybrid vehicles in India, is divided into two distinct phases: FAME India Phase I and FAME India Phase II. Each phase has specific objectives, financial outlays, and target outcomes that collectively contribute to the overarching goal of reducing vehicular emissions and promoting sustainable transportation in India.

FAME India Phase I (2015-2019)

Launch and Financial Outlay:

• Initiation: FAME India Phase I was launched in April 2015 with an initial budget allocation of ₹895 crores.
• Objective: The primary goal of this phase was to encourage the early adoption of electric and hybrid vehicles across different vehicle segments, including two-wheelers, three-wheelers, four-wheelers, and buses.

Key Components and Activities:

1. Financial Incentives for EV Purchase:
   • The scheme provided subsidies to reduce the upfront cost of electric and hybrid vehicles. This financial support aimed to make these vehicles more affordable for consumers, thereby incentivizing their purchase and increasing their presence on Indian roads.
   • The subsidies varied depending on the type of vehicle, with higher incentives for vehicles that offered greater environmental benefits.
2. Development of Charging Infrastructure:
   • Recognizing that inadequate charging infrastructure was a significant barrier to EV adoption, Phase I also focused on supporting the development of a basic network of charging stations.
   • This involved funding pilot projects for setting up charging stations in key urban centers and along major highways. The objective was to reduce range anxiety among potential EV buyers and lay the groundwork for a more extensive infrastructure in the future.
3. Coverage Across Vehicle Segments:
   • The scheme covered a wide range of vehicles, including:
     • Two-wheelers: Encouraging the adoption of electric scooters and motorcycles, particularly for urban commuting.
     • Three-wheelers: Supporting electric auto-rickshaws and similar vehicles, which are vital for last-mile connectivity in cities.
     • Four-wheelers: Promoting the use of electric cars for both personal and commercial purposes.
     • Buses: Focusing on the electrification of public transportation, especially in cities with high pollution levels.

Impact and Outcomes:

• By the end of Phase I, there was a noticeable increase in the awareness and adoption of electric vehicles across India. The phase successfully demonstrated the feasibility of electric mobility in the country, setting the stage for more ambitious efforts in Phase II.

FAME India Phase II (2019-2024)

Launch and Financial Outlay:

• Initiation: Building on the success and learnings of Phase I, FAME India Phase II was launched in April 2019, with a significantly larger budget of ₹10,000 crores.
• Objective: The second phase aims to scale up the efforts of Phase I by focusing on the widespread adoption of electric vehicles, particularly in the public transportation sector, and on enhancing the charging infrastructure and domestic manufacturing of EV components.

Key Components and Activities:

1. Expansion of Charging Infrastructure:
   • Phase II places a strong emphasis on the development of a comprehensive and accessible network of charging stations across the country.
   • This includes the installation of charging stations in urban areas, along highways, and in public spaces, such as parking lots and shopping malls. The goal is to eliminate range anxiety and support the growing number of EV users.
2. Promotion of Electric Vehicles in Public Transportation:
   • A key focus of Phase II is the electrification of public transportation, which has a high impact on reducing urban air pollution and lowering the carbon footprint.
   • The scheme supports the deployment of approximately 7,000 electric buses across various cities, which is expected to significantly reduce emissions in urban areas.
   • In addition to buses, the scheme aims to promote the adoption of 500,000 electric three-wheelers, 55,000 electric four-wheelers, and 1 million electric two-wheelers. This wide coverage across vehicle segments ensures that the benefits of electrification reach all levels of society.
3. Support for Domestic Manufacturing:
   • To create a self-sustaining electric vehicle ecosystem, Phase II encourages the domestic manufacturing of electric vehicle components, such as batteries, electric motors, and power electronics.
   • The scheme provides incentives and support for manufacturers to set up production facilities in India, thereby reducing reliance on imports and fostering innovation within the country.
4. Focus on Fleets and Shared Mobility:
   • Phase II also targets the electrification of fleet vehicles used by government agencies, ride-hailing services, and delivery companies. This approach not only contributes to reducing emissions but also sets an example for the private sector to follow.

Expected Outcomes:

• Environmental Impact: With the extensive deployment of electric vehicles, particularly in public transportation, Phase II is expected to make a significant contribution to reducing greenhouse gas emissions and improving air quality in Indian cities.
• Economic Growth: The focus on domestic manufacturing and infrastructure development is likely to create new jobs, attract investments, and contribute to economic growth.
• Consumer Confidence: By providing a robust support system for electric vehicles, including comprehensive charging infrastructure and financial incentives, Phase II aims to build consumer confidence and accelerate the transition to electric mobility in India.

Objectives of the FAME India Scheme

The primary objectives of the FAME India Scheme are:

The FAME India Scheme is designed with several key objectives to transform the transportation sector in India, focusing on sustainability, energy security, and economic growth. Here’s a detailed breakdown of its primary objectives:

1. Promote Electric Mobility:

• Objective: Accelerate the adoption of electric and hybrid vehicles (EVs) across various vehicle segments, including two-wheelers, three-wheelers, four-wheelers, and buses.
• Strategy: Provide financial incentives to consumers, which directly lower the cost of purchasing EVs. By reducing the upfront cost of ownership, the scheme aims to make EVs more attractive and accessible to a broader segment of the population.
• Impact: Increased adoption of EVs will lead to a gradual shift from conventional internal combustion engine vehicles to cleaner, electric alternatives, fostering a more sustainable transportation system.

2. Reduce Vehicular Emissions:

• Objective: Minimize the environmental impact of the transportation sector by promoting the use of zero-emission electric vehicles.
• Strategy: Encourage the transition from fossil fuel-powered vehicles to electric vehicles, which produce no tailpipe emissions. This is crucial for reducing air pollution in urban areas and mitigating climate change by lowering the overall carbon footprint of the transportation sector.
• Impact: A significant reduction in greenhouse gas emissions and other pollutants, contributing to cleaner air in cities and supporting India’s commitments under international climate agreements, such as the Paris Agreement.

3. Enhance Energy Security:

• Objective: Strengthen India’s energy security by reducing dependence on imported fossil fuels and promoting the use of renewable energy sources for powering electric vehicles.
• Strategy: By encouraging the adoption of EVs, which can be powered by electricity generated from renewable sources like solar and wind, the scheme aims to decrease the nation’s reliance on oil imports. This shift not only reduces the vulnerability to global oil price fluctuations but also promotes the use of indigenous energy resources.
• Impact: Enhanced energy independence and security, along with a more sustainable and diversified energy mix, contributing to economic stability.

4. Boost Domestic Manufacturing:

• Objective: Develop a robust and self-sustaining EV manufacturing ecosystem in India.
• Strategy: Provide incentives and support to manufacturers for producing electric vehicles and related components domestically. This includes promoting the production of batteries, electric motors, and other critical EV parts, fostering innovation, and creating jobs within the country.
• Impact: Growth of the domestic EV industry, reduced import dependency, and the creation of new employment opportunities, positioning India as a global hub for electric vehicle manufacturing.

5. Create Charging Infrastructure:

• Objective: Establish a widespread and reliable network of charging stations across the country to support the growing number of electric vehicles.
• Strategy: Invest in the development of charging infrastructure in urban areas, highways, and other strategic locations. This includes both public charging stations and home charging solutions, ensuring that EV users have convenient access to charging facilities wherever they are.
• Impact: Reduction of range anxiety among potential EV buyers, making electric vehicles a more practical and viable option for everyday use. A well-developed charging network is crucial for the large-scale adoption of EVs and the success of the FAME India Scheme.

Key Components of the FAME India Scheme

The FAME India Scheme is structured around several key components that work together to achieve its objectives:

The FAME India Scheme is designed with multiple components that work synergistically to promote the adoption of electric and hybrid vehicles in India. Each component plays a crucial role in addressing different aspects of the transition to electric mobility. Here’s a detailed look at the key components of the FAME India Scheme:

1. Demand Incentives:

• Purpose: To lower the cost barrier for consumers interested in purchasing electric and hybrid vehicles.
• Implementation:
  • Financial incentives are provided to buyers at the point of purchase, reducing the upfront cost of electric vehicles (EVs) and making them more affordable.
  • The incentives are tailored based on the type and category of the vehicle, such as two-wheelers, three-wheelers, four-wheelers, and electric buses.
  • Higher incentives are typically offered for vehicles that provide greater environmental benefits, such as those with longer ranges or higher energy efficiency.
• Impact: By reducing the initial financial burden on consumers, demand incentives help to increase the adoption rate of EVs, accelerating the transition from traditional internal combustion engine vehicles to electric alternatives.

2. Charging Infrastructure:

• Purpose: To build a widespread and reliable network of charging stations, addressing one of the primary concerns of potential EV buyers—range anxiety.
• Implementation:
  • The scheme supports the development of charging stations across key locations, including urban areas, highways, and public transportation hubs.
  • Special focus is given to ensuring that charging stations are easily accessible in areas with high traffic and demand, such as city centers, commercial areas, and major roadways.
  • The infrastructure includes both fast-charging and standard-charging stations to cater to different needs and preferences.
• Impact: A robust charging infrastructure reduces range anxiety, making it more convenient for EV owners to charge their vehicles and encouraging more consumers to switch to electric mobility.

3. Technology Development:

• Purpose: To foster innovation and improve the technological capabilities of the EV industry in India.
• Implementation:
  • The scheme promotes research and development (R&D) in various areas of electric vehicle technology, including battery technology, electric motors, power electronics, and vehicle design.
  • Funding and support are provided for projects aimed at improving the efficiency, performance, safety, and affordability of electric vehicles.
  • Collaboration between industry, academia, and research institutions is encouraged to accelerate the development of cutting-edge EV technologies.
• Impact: Continuous technological advancements ensure that electric vehicles become more competitive with conventional vehicles in terms of cost, performance, and convenience, making them more attractive to consumers and businesses alike.

4. Awareness Campaigns:

• Purpose: To educate the public about the benefits of electric mobility and the incentives available under the FAME India Scheme.
• Implementation:
  • The scheme includes nationwide awareness campaigns to inform consumers about the environmental and economic advantages of electric vehicles.
  • These campaigns highlight the financial incentives provided under the scheme, the availability of charging infrastructure, and the long-term cost savings associated with EV ownership.
  • Public outreach efforts include advertisements, social media campaigns, workshops, and partnerships with local governments and organizations.
• Impact: Increased public awareness and understanding of electric vehicles lead to higher adoption rates, as more consumers become aware of the benefits and incentives associated with EV ownership.

Achievements and Impact

Since its inception, the FAME India Scheme has made significant strides in promoting electric mobility in India:

The FAME India Scheme has had a considerable impact on the electric mobility landscape in India since its launch. Here’s a detailed look at the key achievements and the broader impact of the scheme:

1. Increased EV Adoption:

• Achievement: The FAME India Scheme has significantly boosted the adoption of electric vehicles (EVs) across various segments, especially in urban areas.
• Impact:
  • Electric Two-Wheelers and Three-Wheelers: The scheme has made electric two-wheelers and three-wheelers more affordable and accessible, leading to a surge in their adoption. These vehicles are particularly popular in cities where they serve as a cost-effective and eco-friendly mode of transport.
  • Electric Buses: The deployment of electric buses has increased, especially in metropolitan cities, improving public transportation systems while reducing pollution levels.
  • Market Penetration: The scheme has helped increase the penetration of EVs in the Indian market, paving the way for a more sustainable transportation ecosystem.

2. Expansion of Charging Infrastructure:

• Achievement: The FAME India Scheme has played a crucial role in the establishment of a widespread charging infrastructure across the country.
• Impact:
  • Numerous Charging Stations: The number of charging stations has grown significantly, reducing the range anxiety associated with EVs and making them a more viable option for daily commuting and long-distance travel.
  • Strategic Locations: Charging stations have been strategically placed in urban centers, along highways, and at key public transportation hubs, ensuring that EV owners have convenient access to charging facilities wherever they go.
  • Encouragement of Further EV Adoption: The development of a robust charging network has not only supported current EV users but has also encouraged more consumers to consider purchasing electric vehicles.

3. Growth in Domestic Manufacturing:

• Achievement: The FAME India Scheme has contributed to the growth of the domestic electric vehicle manufacturing industry, aligning with the government’s “Make in India” initiative.
• Impact:
  • New Entrants in the Market: Several Indian companies have entered the EV market, manufacturing vehicles and components domestically. This has reduced dependence on imports and promoted the development of a homegrown EV industry.
  • Creation of Jobs: The growth of the EV manufacturing sector has created new jobs and opportunities in areas such as vehicle production, component manufacturing, battery development, and R&D.
  • Innovation and Competitiveness: The scheme has spurred innovation within the domestic market, leading to the development of advanced and cost-effective EV technologies, enhancing the global competitiveness of Indian manufacturers.

4. Reduction in Emissions:

• Achievement: The widespread adoption of electric vehicles under the FAME India Scheme has contributed to a reduction in vehicular emissions across the country.
• Impact:
  • Lower Carbon Footprint: As more people switch to electric vehicles, the transportation sector’s carbon footprint has begun to decrease, supporting India’s efforts to combat climate change and meet its international commitments.
  • Improved Air Quality: The reduction in emissions has led to better air quality, particularly in urban areas where pollution levels from conventional vehicles were previously high.
  • Contribution to Climate Goals: The shift towards electric mobility is a critical step in helping India achieve its climate goals, including the reduction of greenhouse gas emissions and the transition to a low-carbon economy.

Challenges and Future Prospects

While the FAME India Scheme has achieved significant milestones, there are still challenges to overcome:

The FAME India Scheme has made notable progress in promoting electric mobility, but several challenges must be addressed to fully realize its potential. Here’s a closer look at the challenges and future prospects of the scheme:

Challenges

1. Infrastructure Gaps:
   • Current Situation: While significant strides have been made in developing charging infrastructure in urban areas, rural and remote regions still face significant infrastructure deficits. This lack of infrastructure hinders the widespread adoption of electric vehicles (EVs) outside major cities.
   • Impact: Without a comprehensive and accessible charging network, potential EV buyers in rural and semi-urban areas may hesitate to switch from traditional vehicles due to concerns about charging availability.
   • Addressing the Challenge: Expanding the charging infrastructure into these underserved areas is crucial. This can be achieved through targeted government policies, incentives for private sector investment, and innovative solutions such as mobile charging units or community-based charging stations.
2. High Initial Costs:
   • Current Situation: The upfront cost of electric vehicles remains relatively high compared to conventional internal combustion engine vehicles, even with the financial incentives provided under the FAME India Scheme.
   • Impact: High initial costs can be a significant barrier for many consumers, particularly in price-sensitive markets. This slows down the adoption rate of EVs, especially among middle-income and low-income households.
   • Addressing the Challenge: Continued technological advancements, such as improvements in battery technology and economies of scale in manufacturing, are essential to bring down the costs of EVs. Additionally, increasing government incentives and exploring alternative ownership models, such as leasing or battery-swapping, could make EVs more affordable.
3. Consumer Awareness:
   • Current Situation: While awareness of electric vehicles is growing, many consumers still lack a deep understanding of the benefits of EVs, such as lower operating costs, environmental advantages, and the incentives available under the FAME India Scheme.
   • Impact: Limited awareness can lead to hesitation or reluctance to adopt EVs, as potential buyers may not fully grasp the long-term benefits or may be influenced by misconceptions about the reliability and convenience of EVs.
   • Addressing the Challenge: Ongoing public awareness campaigns are needed to educate consumers about the advantages of electric mobility. Collaboration with automotive manufacturers, environmental organizations, and local governments can help reach a broader audience. Additionally, providing hands-on experiences, such as test drives and community events, can help demystify EVs for potential buyers.

Future Prospects

1. Sustained Government Support:
   • Importance: The continued success of the FAME India Scheme will rely heavily on ongoing government commitment, including financial incentives, policy frameworks, and regulatory support.
   • Future Focus: The government must ensure that policies remain adaptive to market changes and technological advancements. Extending and expanding incentives, reducing import duties on key components, and implementing stricter emissions standards for conventional vehicles can further drive the transition to electric mobility.
2. Technological Innovation:
   • Importance: Technological advancements will play a critical role in overcoming current challenges, such as high costs and range anxiety.
   • Future Focus: Continued investment in research and development (R&D) is essential to improve battery technology, enhance vehicle performance, and reduce production costs. Innovations in energy storage, such as solid-state batteries, and advancements in charging technology, like ultra-fast charging and wireless charging, will be key to the future success of the EV industry.
3. Collaboration Between Public and Private Sectors:
   • Importance: Collaboration between the government, private companies, and research institutions is crucial for scaling up EV adoption and infrastructure.
   • Future Focus: Public-private partnerships can drive the expansion of charging networks, support domestic manufacturing, and create new business models for EV ownership. The private sector’s role in innovating and bringing competitive products to market, combined with government incentives and policy support, will be critical to achieving widespread adoption.

Conclusion

The FAME India Scheme is a pivotal initiative in India’s transition towards sustainable transportation. By promoting the adoption of electric and hybrid vehicles, the scheme is not only reducing the country’s carbon footprint but also fostering innovation and growth in the EV industry. As the scheme evolves and expands, it holds the potential to transform India’s transportation landscape and set an example for other nations to follow.