As of December 12, 2025, The Minister of Heavy Industries provided details regarding the promotion of electric vehicle (EV) manufacturing in India.
Under the FAME-II scheme, demand incentives were provided to consumers in the form of upfront reduction in the purchase price of hybrid and electric vehicles. These incentives were reimbursed to original equipment manufacturers (OEMs) by the Government of India. A demand incentive of Rs. 6,559 crore was reimbursed to OEMs under the FAME-II Scheme which ended on March 31, 2024.
As per information from Oil Marketing Companies (IOCL, BPCL, and HPCL), 751 EV charging stations were sanctioned and installed in Karnataka under the FAME-II scheme.
The FAME-II scheme resulted in a substantial increase in market penetration with EV adoption levels rising from 0.71% in FY 2019-20 to 7.50% in FY 2024-25. The scheme supported the sale of 16,71,606 electric vehicles (as of March 31, 2025) and sanctioned 6,862 e-buses for deployment. FAME-II also strengthened domestic manufacturing through the mandatory Phased Manufacturing Programme (PMP), resulting in the expansion of the domestic EV ecosystem, increased investments in manufacturing, and the development of a robust local supply chain, contributing to indirect and direct employment generation.
Key Entities Referenced
FAME-II Scheme: A scheme providing demand incentives to promote the adoption and manufacturing of electric vehicles in India.
Ministry of Heavy Industries: The Indian government ministry responsible for the FAME-II scheme and related policies.
Karnataka: A state in India where the number of EV charging stations sanctioned and installed under FAME-II scheme is mentioned.
Phased Manufacturing Programme (PMP): Mandatory component of the FAME-II scheme requiring progressive localization of key EV components to strengthen domestic manufacturing.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
RAJYA SABHA
UNSTARRED QUESTION NO. 1523
ANSWERED ON 12.12.2025
PROMOTION OF ELECTRIC VEHICLE MANUFACTURING IN INDIA
1523. SHRI LAHAR SINGH SIROYA:
Will the Minister of Heavy Industries be pleased to state:
(a) the details of incentives provided under the FAME Scheme to boost electric vehicle
production;
(b) the number of EV charging stations sanctioned and installed in Karnataka; and
(c) the overall impact of these initiatives on the automobile sector and employment generation?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): Under the FAME-II scheme, demand incentives were provided consumers (buyers/end users)
in the form of an upfront reduction in the purchase price of hybrid and electric vehicles, which facilitated
wider adoption. These incentives were reimbursed to the original equipment manufacturers (OEMs,
i.e., EV manufacturers) by the Government of India. Demand incentive of Rs.6,559 crore were
reimbursed to OEMs under the FAME-II Scheme which ended on 31/03/2024.
(b): As per information from Oil Marketing Companies (IOCL, BPCL and HPCL), the number of
EV charging stations sanctioned and installed in Karnataka under FAME-II Scheme is 751.
(c): The FAME-II scheme resulted in a substantial increase in market penetration with EV adoption
level rising from 0.71% in FY 2019-20 to 7.50% in FY 2024-25. This scheme supported the sale of
16,71,606 electric vehicles (as of March 31, 2025) and sanctioned 6,862 e-buses for deployment.
FAME-II also strengthened domestic manufacturing through the mandatory Phased Manufacturing
Programme (PMP), which required progressive localization of key EV components. This resulted in
the expansion of the domestic EV ecosystem, increased investments in manufacturing and the
development of a robust local supply chain. Collectively, these initiatives contributed to indirect and
direct employment generation as well.
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