Please Tell Us Your City

Knowing your city will help us provide relevant content to you.

Sorry! No matching results found. Try again.Error Identifying Your Location.

Log in to CarWale

Please enter your password
Forgot password?
Please enter your registered email

Or Login with

Sign in with facebook
Sign In with google

Sign up to CarWale

Please enter your name
+91
Please enter your mobile number
Please enter your password
Please enter your password
Ad

Mild hybrid cars will no longer benefit from FAME incentives

April 03, 2017, 05:00 PM IST by Nikhil Puthran
Mild hybrid cars will no longer benefit from FAME incentives

Back in 2015, the central government announced the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme to encourage automakers to switch over to greener technology. Discounts of up to Rs 29,000 were offered on two wheelers, while discount on four-wheelers went up to Rs 1.38 lakh. Popular sellers like Ciaz and Ertiga from Maruti Suzuki as well as Scorpio from Mahindra will be among the ones affected by this move.

As per Department of Heavy Industries, of the Rs 40 Crore funds allocated, close to 60 per cent of the total allotments were portioned for mild hybrid cars while the more eco-friendly but expensive full electric cars received only about 14 per cent of the total subsidy offered. Now, that incentive amount has been blocked and will be used for the benefit of electro-mobility programme. The report went on to state that although mild diesel hybrid vehicles showed marginal improvement over conventional diesel models, it still continues to be polluting and fuel inefficient, compared to electric and strong hybrid cars.  

As of today, cars with mild-hybrid technology will no longer benefit under the FAME incentive, however it will continue to attract a lower 11.5 per cent excise cut under the government’s union budget policy in efforts to promote clean technology. Until now, the Ciaz sedan and the Ertiga MPV from Maruti Suzuki attracted a subsidy of Rs 13,000 under the FAME scheme. Though this benefit will no longer be passed on to the customers, they can however avail Rs 10, 000 off being offered by the automaker. This will mean that interested customers will end up spending an additional Rs 3,000 over the current ex-showroom cost.

As for Mahindra customers, the prices remain unchanged for now, as dealers continue to offer the Intelli-hybrid Scorpio at existing prices until further notifications. Hyundai, the second largest player in the Indian market, which had plans to introduce the Creta and the Verna with mild-hybrid technology later this year, will also miss on the incentive benefit.

Tags:Maruti Suzuki,Ciaz,Maruti Suzuki Ciaz
Show CommentsHide Comments
Ad
  • Upcoming Cars

Honda CivicHonda Civic

7th Mar 2019

13L - ₹ 18L
Tata 45XTata 45X

Mar 2019

8L - ₹ 10L
BMW i8 RoadsterBMW i8 Roadster

Apr 2019

2.80Cr - ₹ 3Cr
Mahindra e20 NXTMahindra e20 NXT

Jul 2019

6L - ₹ 8L
Mahindra eKUV100Mahindra eKUV100

Dec 2019

8L - ₹ 9L
All Upcoming Cars
Ask the experts1800 2090 230Mon-Fri (9 AM - 8 PM)
Sat (9 AM - 5:30 PM)
Sun (9 AM - 7 PM)
Toll free

Select your city to avail offers

Currently available only in