New Delhi sources have stated that the government has withdrawn incentives given to mild hybrid vehicles under FAME India scheme, impacting the country's largest car maker Maruti Suzuki India the most. The company's popular models, multi utility vehicle Ertiga and mid-sized sedan Ciaz with mild hybrid technology had benefited from the scheme that was launched in April 2015 to popularize the use of electric vehicles in the country.
Mild hybrid technology will stand excluded from the benefits of the FAME India scheme with effect from April 1, 2017, a notification by Ministry of Heavy Industries and Public Enterprises said. Earlier, mild hybrid, strong hybrid, plug-in hybrid and pure electric vehicles were given incentives under the scheme.
While extending the Phase I of the scheme to
September 30, the notification, however, said "sales of mild hybrid
vehicles by dealer to retail purchasers affected up to March 31, 2017 will not be
affected..." A mild hybrid vehicle has an electric motor, which on its own
cannot run a vehicle but assists normal engine by using recovered energy stored
in a battery and helps save fuel.
MSI's Ertiga and Ciaz, equipped with Smart Hybrid Vehicle by Suzuki (SHVS) technology, had received incentives of Rs 13,000 each under the scheme. SVHS equipped Ertiga is priced between Rs 7.17 lakh and Rs 8.75 lakh while the same for Ciaz is between Rs 7.87 and Rs 9.57 lakh (ex-showroom Delhi). When contacted, a company spokesperson said: "We believe that mild hybrid technology is the first step towards full hybridization. MSIL is committed to this technology which is part of the government's NEMMP programme."
