Quick HighlightsIntroduction and expansion of the PM e-DRIVE, FAME, PLI schemes.Direct discount to the buyers on the purchase price.PM e-DRIVE scheme gives ₹10,900 crore for subsidies for direct purchase, electric buses, public charging infrastructure, and vehicle testing agencies.India has significantly ramped up its push toward electric mobility through the introduction and expansion of key initiatives like the PM e-DRIVE Scheme , the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) Scheme , and the Production Linked Incentive (PLI) Schemes . Together, these programs aim to reshape the country's transport landscape by boosting EV adoption, supporting local manufacturing, and building a nationwide charging ecosystem.Also Read: UP Govt to Invest ₹700 cr in EV Manufacturing Hub in KanpurSubsidies Directly to Buyers, Not OEMsUnder the ongoing FAME scheme, subsidies are provided directly to buyers of electric vehicles (EVs) as an upfront discount on the purchase price. Original Equipment Manufacturers (OEMs) are later reimbursed by the Ministry of Heavy Industries. This consumer-centric model has seen widespread success.During Phase-I of the FAME scheme (2015–2019), a total of ₹529 crore was disbursed. In Phase-II , over ₹6,558 crore has been utilized across electric two-wheelers (e2Ws), three-wheelers (e3Ws), and four-wheelers (e4Ws), with e2Ws receiving the largest share of incentives.Between 1 April 2023 and 31 March 2025, over 10.47 lakh EVs were sold under the FAME-II scheme, with Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Uttar Pradesh emerging as the top-performing states. Even relatively small districts like Etah, Etawah, and Kasganj in Uttar Pradesh contributed to this figure, underscoring the scheme's pan-India reach.PM e-DRIVE Scheme: ₹10,900 Crore Boost for India's EV EcosystemThe PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-DRIVE) scheme, launched on 29 September 2024, has a two-year outlay of ₹10,900 crore . It complements the FAME scheme but goes further by focusing on both consumers and manufacturers.A total of ₹3,679 crore under PM e-DRIVE is allocated as direct purchase subsidies for:24.79 lakh electric two-wheelers3.15 lakh electric three-wheelers5,643 electric trucksA dedicated budget for electric ambulancesIn addition to vehicle incentives, the scheme sets aside:₹4,391 crore for deploying 14,028 electric buses in cities with populations over 40 lakh, including Delhi, Mumbai, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune.₹2,000 crore for building public charging infrastructure nationwide, including semi-urban and rural regions like Bundelkhand.₹780 crore for upgrading vehicle testing agencies , ensuring higher quality and safety standards.The scheme is guided by the Phased Manufacturing Programme (PMP) , which mandates gradual localization of EV components and promotes domestic production across the supply chain. It directly supports the country’s climate goals under India’s Panchamrit commitment and updated Nationally Determined Contributions (NDCs) made at COP26.PLI Schemes: Incentivizing Manufacturing and Battery InnovationTo support the manufacturing side of the EV revolution, the government has also rolled out Production Linked Incentive (PLI) schemes.The PLI Scheme for Automobile and Auto Components offers:13% to 18% incentives for OEMs under the Champion category7.2% to 13% incentives for auto component manufacturers, with an additional 5% for EV-specific componentsEligibility requires a minimum 50% Domestic Value Addition (DVA) .As of 31 March 2025, ₹29,576 crore has been invested under this scheme, creating nearly 45,000 jobs and issuing 106 DVA certificates.In parallel, the PLI Scheme for Advanced Chemistry Cells (ACC) is designed to support battery cell manufacturing in India. Battery cells are a core component of EVs, and their domestic production will significantly reduce costs and dependency on imports.Also Read: India Plans Battery Passport for EV Safety, Quality & ExportTowards a Cleaner, Localized, and Future-Ready EV EcosystemTogether, the PM e-DRIVE, FAME, and PLI schemes represent a multi-pronged, integrated strategy to transform India’s transportation sector. From offering upfront subsidies to EV buyers, deploying e-buses and chargers across the country, to supporting local manufacturers and battery producers, the initiatives are laying the groundwork for a self-reliant, low-emission, and globally competitive EV industry .Importantly, these schemes have no urban-rural bias and are applicable pan-India, ensuring that the transition to electric mobility reaches every corner of the country — from metro cities to smaller towns and rural regions.