The Indian government has been actively working to make electric mobility affordable and accessible. One of the most important initiatives in this journey is the FAME 2 Subsidy (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles – Phase II). This scheme provides direct financial support to reduce the purchase cost of electric two-wheelers, making them a practical option for more riders while supporting a greener environment.
FAME 2 Subsidy
The FAME 2 subsidy is designed to make electric two-wheelers more affordable by covering part of the purchase cost. The discount is processed seamlessly, with the amount adjusted directly through the dealership or transferred to the buyer’s account after verification. Several popular EV models are included under this scheme, giving buyers instant savings and more value for money.
Makes EVs accessible to a wider audience
Encourages adoption of clean mobility in cities and small towns
Supports India’s mission to cut down on emissions and pollution
By lowering the upfront cost, the scheme directly promotes eco-friendly commuting for daily use.
Eligibility Criteria
Not every buyer or EV qualifies for the subsidy. Both the buyer and the vehicle must meet certain requirements.
Vehicle Requirements:
Must be listed under the official FAME 2 eligible models
Should meet battery and performance specifications
Must be purchased from an authorized dealership
Buyer Requirements:
Indian resident with a valid Aadhaar card
A bank account for direct subsidy transfer
Purchase from a recognized dealer approved by the government
Checking these conditions in advance ensures a smooth claim process.
Step-by-Step Guide to Claiming the Subsidy
1. Choose an Eligible Vehicle
Confirm that your preferred electric two-wheeler is listed under the FAME 2 subsidy program.
2. Visit an Authorized Dealership
Only vehicles purchased from approved dealers are eligible. Check model availability, price, and features before buying.
3. Submit Documents
You’ll need to provide Aadhaar, vehicle invoice, registration certificate, bank details, and proof of identity/address.
4. Dealer Uploads Claim
The dealer uploads all details to the FAME 2 portal for official verification.
5. Verification Process
The nodal agency checks your documents, battery specifications, and registration details.
6. Subsidy Disbursement
Once verified, the subsidy is adjusted in the price or directly credited to your bank account, usually within a few weeks.
Documents Required
To avoid delays, keep these documents ready:
Aadhaar card
Bank account details (with IFSC)
EV invoice and registration certificate
Identity proof (PAN card, passport, etc.)
Address proof (utility bill, voter ID, rental agreement)
Well-prepared documents make the entire process faster and hassle-free.
How the Subsidy Is Calculated
The subsidy amount depends mainly on the battery capacity and type of vehicle. For instance, a higher-capacity electric bike attracts more subsidy compared to smaller scooters.
Example:
EV price: ₹1,00,000
Subsidy: ₹15,000–₹20,000
Final cost: ₹80,000–₹85,000
This price reduction significantly lowers the barrier for first-time EV buyers.
Common Challenges and Tips
Some buyers face delays due to incorrect documents or ineligible vehicle choices. To avoid these:
Double-check all documents before submission
Ensure your EV model is listed under FAME 2
Always purchase from government-approved dealerships
Benefits of Claiming the Subsidy
Reduces upfront cost of electric two-wheelers
Encourages sustainable transport
Helps improve air quality by reducing vehicular emissions
Ensures purchase of quality-tested, government-approved EVs
The FAME 2 subsidy is a golden opportunity for anyone looking to shift to electric mobility without worrying about high costs. By following the process carefully and ensuring eligibility, buyers can enjoy significant savings while contributing to a cleaner environment.