FAME III Subsidy Update 2025 – New Rates & Models for Electric Scooters

India’s EV movement is gathering speed, and 2025 marks a pivotal moment with the launch of the FAME III scheme update. For those looking to switch to electric scooters, the electric scooter subsidy 2025 brings renewed hope for affordability and sustainability.

Let’s take a closer look at what’s changing, what models are eligible, and how you can benefit.

What is the FAME III Scheme?

The FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) initiative was introduced by the Indian government to encourage eco-friendly transportation. Now in its third phase, the FAME III scheme update includes revised incentives for EV buyers, especially two-wheeler users.

Objectives of FAME III

• Increase adoption of electric vehicles in India

• Lower emissions and promote environmental sustainability

• Boost domestic EV manufacturing

• Support development of nationwide EV infrastructure

What’s New in the Electric Scooter Subsidy 2025?

With the launch of FAME III, subsidy rates and eligibility criteria have been adjusted. The focus is on expanding access while controlling budget allocation.

Key Updates in Subsidy Structure

Who Can Avail the Subsidy?

The electric scooter subsidy 2025 is designed for a broad audience, including:

• Daily commuters

• Ride-hailing drivers (e.g., Ola, Rapido)

• Food delivery and courier fleets

• Students and professionals

Basic Eligibility Criteria

To qualify under the FAME III scheme update, electric scooters must:

• Offer a minimum range of 80 km per charge

• Have a top speed of at least 40 km/h

• Use Indian-made batteries and components

• Be sold by an authorized dealership

List of Eligible Electric Scooters in 2025

The government has approved several popular models that meet the FAME III scheme update criteria.

These models offer a good balance of range, performance, and now, affordability with the new subsidy.

How to Claim the FAME III Subsidy

One of the best parts of the electric scooter subsidy 2025 is its simplicity. Buyers don’t have to apply separately—the subsidy is already integrated into the pricing.

Steps to Avail the Subsidy

• Visit an EV dealership authorized under the FAME III scheme

• Choose a model eligible for the subsidy

• The dealer will automatically apply the subsidy to the final invoice

• Pay the reduced amount at purchase

There’s no separate application process or extra paperwork for the buyer.

What Else is Planned Under FAME III?

The government aims to support the ecosystem beyond just scooters.

Additional Plans Include:

• Affordable EV loans and financing options

• Introduction of electric vehicle leasing for delivery partners

• Expansion of fast-charging stations across highways and cities

• Inclusion of electric three-wheelers in the next rollout

FAQs

Q1. What’s the biggest change in FAME III compared to FAME II?

FAME III offers a reduced subsidy per kWh but supports a much higher volume of electric scooters, encouraging mass adoption.

Q2. Are used or older electric scooters eligible for the subsidy?

No, only brand-new electric scooters that meet the updated FAME III criteria are eligible.

Q3. Until when will the FAME III subsidy be available?

The current scheme will run from April 2025 to March 2029, unless revised earlier by the government.

Q4. Do all dealerships offer FAME III subsidies?

Only dealerships registered under the FAME III program can offer the subsidized rates. It’s best to confirm before making your purchase.