The central government has cut the allocation for the Faster Adoption of Manufacturing of Electric Vehicles in India (FAME) by 44% to Rs 2,671 crore for FY25, down from Rs 4,807 crore. Meanwhile, the allocation for the production-linked incentive (PLI) scheme for automobile companies has increased to Rs 3,500 crore from Rs 600 crore. This shift forces automakers to focus on economies of scale rather than relying on direct subsidies.