"FAME III" hasn't been officially approved yet — here's what's actually live right now (PM E-DRIVE), the March 2026 subsidy deadline bearing down on the industry, and what it all means if you're building a career in EV engineering.
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If you've searched for "FAME III," you've probably landed on conflicting answers — and that's because the scheme hasn't actually been approved yet. What's driving India's EV incentive landscape today is PM E-DRIVE, the scheme that replaced FAME II in September 2024. It's a more modest programme than its predecessor, it's facing a hard deadline for two- and three-wheeler buyers, and it's already reshaping where EV companies are investing — and hiring. Here's the accurate picture, and what it means if you're building a career in this industry.
*Buses, trucks, ambulances and charging infrastructure components continue through March 2028; 2W/3W demand incentives end March 2026.
"FAME" stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles — India's flagship EV subsidy programme. Five distinct phases have shaped the policy since 2015, and the line between them is where most of the search confusion comes from:
The pilot phase, with an outlay of roughly ₹895 crore supporting around 2.78 lakh electric and hybrid vehicles.
A much larger ₹10,000 crore programme (later revised upward) covering electric buses, three-wheelers, four-wheelers and two-wheelers.
A short ₹500 crore bridge scheme to avoid a subsidy gap between FAME II and its successor, at noticeably lower per-vehicle incentive levels.
The scheme that actually replaced FAME II — ₹10,900 crore, covering two-wheelers, three-wheelers, e-buses, trucks, ambulances and charging infrastructure.
Discussed by a Parliamentary Standing Committee as a possible next phase, but it has not received cabinet approval.
In plain terms: PM E-DRIVE is doing the job many people associate with "FAME III." If you're researching this topic for a career decision or a business plan, the scheme to actually study is PM E-DRIVE — not a programme that hasn't launched. It's also worth getting familiar with the broader EV powertrain technology these incentives are designed to support, and exploring EV Systems training options if you're evaluating where the engineering opportunities sit.
PM E-DRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement) is structured around demand incentives for specific vehicle categories, alongside support for charging infrastructure. Here's how the incentive structure breaks down, along with what our EV Systems courses cover for each segment:
| Vehicle Category | Incentive Structure | Status / Deadline |
|---|---|---|
| Electric Two-Wheelers | Demand incentive capped per kWh of battery capacity | Ends Mar 31, 2026 |
| Electric Three-Wheelers | Demand incentive capped per kWh of battery capacity | Ends Mar 31, 2026 |
| E-Buses | Support routed through state transport undertakings | Continues to Mar 2028 |
| E-Trucks & Ambulances | Demand incentives for select commercial categories | Continues to Mar 2028 |
| Charging Infrastructure | Capital support for public charging stations | Continues to Mar 2028 |
The demand incentives for electric two-wheelers and three-wheelers under PM E-DRIVE are scheduled to expire on March 31, 2026 — even though the broader programme continues through March 2028 for buses, trucks, and charging infrastructure. For entry-level 2W/3W buyers, this likely means higher effective prices once the subsidy lapses, which is already pushing dealers to front-load sales ahead of the deadline. For manufacturers, it raises the stakes on cost reduction through localization rather than relying on government support to stay price-competitive — a shift with direct implications for where engineering investment goes next.
A Parliamentary Standing Committee has recommended that a future FAME-III scheme extend support to electric four-wheelers and hybrids — categories that PM E-DRIVE largely leaves out — and has pushed for continuity so manufacturers aren't left without policy support once current components lapse. None of this is confirmed policy. Until there's a cabinet approval and an official notification, treat any "FAME III" coverage online as a proposal, not a programme you can plan around.
As demand-side subsidies for two- and three-wheelers taper off, OEM investment is visibly shifting toward the parts of the EV stack that reduce costs structurally rather than relying on government support. That shift is exactly where new engineering roles are opening up:
India's push toward domestic Advanced Chemistry Cell (ACC) production is creating demand for engineers who understand cell design, pack integration, and local supply chains. Explore the Battery Technology Engineer career path if this interests you.
Battery Management Systems and power electronics design remain among the most consistently hired-for skill sets across EV OEMs, regardless of which subsidy scheme is active in a given year.
With charging infra support continuing through 2028, roles in charger design, grid integration, and network deployment are growing faster than vehicle-assembly roles.
Motor control, embedded systems, thermal management and EV diagnostics are showing up repeatedly in job postings. See our Best EV Courses in India guide to map these skills to specific programmes.
For a closer look at who's actively recruiting in this space, see Top EV Companies Hiring Engineers in India 2026. If you want to build job-ready skills across these areas, our PG Diploma in Electric Vehicle Technology is designed around exactly this shift in industry demand.
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