Under FAME-India Scheme phase-II, no incentive is given to Electric vehicle manufacturers. The incentive/concession is provided to consumers (buyers/end users) in the form of an upfront reduction in purchase price of hybrid and electric vehicles to enable wider adoption, which is reimbursed to the OEM (EV manufacturers) by Government of India.
under FAME-India Scheme phase-II, the demand incentive/subsidy is passed on to the persons purchasing vehicles from the OEM at the time of purchase of the vehicle in the form of an upfront reduction in purchase price of hybrid and electric vehicles. Category-wise subsidy reimbursed to OEMs towards the incentive claimed by them during last five years (01.04.2019 to 31.03.2024) is as under:
| Sl. No. | Segment | Incentive Amount Paid (Rs. in crore) |
| 1 | e-2w | 4,375.59 |
| 2 | e-3w | 845.61 |
| 3 | e-4w | 399.12 |
| 4 | e-buses * | 1,322.00 |
| Total for above | 6,942.32 |
* Subsidy amount released to State Transport Units