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FAME III Scheme May Boost Hydrogen Cars and Ethanol-powered Vehicles in India

19 Sept 2023

Exciting news is on the horizon for the Indian automotive landscape as the third iteration of the FAME (Faster Adoption And Manufacturing Of Hybrids And Electric Vehicles) scheme is in the works. Government sources have hinted at the possibility of the new FAME III scheme extending its reach to include alternative fuel vehicles.

Hydrogen Fuel Cell Vehicles on the Horizon

One notable inclusion in the potential expansion of the FAME III scheme is hydrogen-fueled vehicles. While hydrogen cars are still a developing technology, their potential inclusion in this initiative could serve as a significant motivator for manufacturers to expedite their efforts in this sector. Currently, India is seeing the likes of Toyota Mirai and Hyundai Nexo as the primary hydrogen-powered fuel cell vehicles associated with the Indian market.

Ethanol-powered Cars in the Mix

In addition to hydrogen cars, there's speculation that ethanol-powered vehicles may also find a place under the umbrella of the FAME III scheme. Ethanol is considered an alternative and eco-friendly fuel option, and its inclusion could further diversify the Indian automotive market and reduce its reliance on traditional fossil fuels.

Potential Increase in Electric Car Subsidies

The FAME III scheme may also bring about an increase in subsidies for electric cars. This move aligns with the government's continued push for cleaner and more sustainable transportation options in the country.

As India gears up for FAME III, there's a growing sense of anticipation and optimism among manufacturers and enthusiasts alike. While the current FAME II scheme primarily focuses on hybrids and electric vehicles, the potential expansion into hydrogen and ethanol options could mark a pivotal moment in India's journey toward more diverse and eco-conscious mobility solutions. Among the hydrogen pioneers in India is Toyota, currently testing its Mirai, a hydrogen-powered fuel-cell vehicle, which could be one of the earliest entrants in this emerging market.


The FAME III scheme is poised to play a crucial role in shaping India's automotive landscape, promoting alternative fuels, and accelerating the adoption of greener transportation options. Stay tuned for further developments as India takes strides toward a more sustainable automotive future.

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