Government has approved Phase-II of FAME Scheme with an outlay of Rs. 10,000 Crore for a period of 3 years commencing from 1st April 2019. Out of total budgetary support, about 86 percent of fund has been allocated for Demand Incentive so as to create demand for xEVs in the country. This phase aims to generate demand by way of supporting 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 E Four Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers.

However, depending upon off-take of different category of xEVs, these numbers may vary as the provision has been made for inter as well as intra segment wise fungibility. Only advanced battery and registered vehicles will be incentivized under the scheme. With greater emphasis on providing affordable & environment friendly public transportation options for the masses, scheme will be applicable mainly to vehicles used for public transport or those registered for commercial purposes in e-3W, e-4W and e-bus segments. However, privately owned registered e-2Ws are also covered under the scheme as a mass segment.