Indian Government Withdraws FAME Subsidies For Mild Hybrids
The Central Government has effectively withdrawn the subsidies that have been provided to mild hybrid diesel cars under the FAME scheme. The FAME or Faster Adoption and Manufacturing of Hybrid and Electric Vehicles was introduced in 2015 and offered discounts of up to Rs 29,000 for two wheelers and up to Rs 1.38 lakh for four wheelers. The change in policy will affect the prices of two Maruti Suzuki vehicles in India, the Ertiga and the Ciaz. Incidentally, the Ciaz was just recently moved to the Nexa chain of premium dealerships.
Highlights
- Central Government withdraws FAME subsidies to mild hybrid cars
- Maruti Suzuki to be most affected by withdrawal of mild hybrid subsidy
- Maruti Suzuki Ertiga and Maruti Suzuki Ciaz to become more expensive
The Central Government has effectively withdrawn the subsidies that have been provided to mild hybrid diesel cars under the FAME scheme. The FAME or ‘Faster Adoption and Manufacturing of Hybrid and Electric Vehicles’ was introduced in 2015 and offered discounts of up to Rs 29,000 for two wheelers and up to Rs 1.38 lakh for four wheelers. The change in policy will affect the prices of two Maruti Suzuki vehicles in India, the Ertiga and the Ciaz. Incidentally, the Ciaz was just recently moved to the Nexa chain of premium dealerships.
Mild hybrid technology is different from plug-in or conventional hybrid vehicles. Mild hybrid vehicles use the energy generated while applying the brakes and turns it into electric energy that is then stored in a battery. This energy can then be used to turn the starter motor when the car’s start stop system needs it. In most cases, a mild hybrid will turn its engine off when at idle or when it comes to a halt at a traffic signal for instance. Research shows that mild-hybrids are only 7-15% more fuel efficient as compared to conventional hybrid systems that can run on pure electric power for short distances too.
The overall benefit given under the FAME scheme was approximately Rs 66 Crore. According to the Department of Heavy Industries, almost Rs 40 Crore of the funds allotted, which is close to 60% of the total allotments were directed towards the mild hybrid cars while the more eco-friendly (but more expensive) full electric cars got only about 14% of the total subsidy offered. The
Stay updated with automotive news and reviews right at your fingertips through carandbike.com's WhatsApp Channel.
Great Deals on Used Cars
View All Used Cars8.0
2016 Maruti Suzuki Wagon R
- 46,324 km
- Petrol
- AMT
Rs. 3.85 Lakh
Car Choice Exclusif Amberhai, New Delhi
8.5
2020 Maruti Suzuki Wagon R
- 35,000 km
- Petrol+CNG
- Manual
Rs. 5.75 Lakh
₹ 12,878/month
Car Choice Exclusif Amberhai, New Delhi
8.4
2021 Mahindra XUV700
- 29,065 km
- Diesel
- Manual
Rs. 23.5 Lakh
INDRAPRASTHA AUTOMOBILES PVT. LTD. New Delhi
7.7
2019 Mahindra Alturas G4
- 16,178 km
- Diesel
- Automatic
Rs. 23.5 Lakh
Car Choice Exclusif Amberhai, New Delhi
8.9
2021 Hyundai Venue
- 13,870 km
- Petrol
- Manual
Rs. 7.75 Lakh
₹ 16,387/month
INDRAPRASTHA AUTOMOBILES PVT. LTD. New Delhi
8.8
2022 Maruti Suzuki Brezza
- 5,903 km
- Petrol
- Manual
Rs. 12.5 Lakh
₹ 27,996/month
INDRAPRASTHA AUTOMOBILES PVT. LTD. New Delhi
8.3
2020 Mahindra XUV300
- 25,279 km
- Diesel
- AMT
Rs. 8.75 Lakh
₹ 18,502/month
INDRAPRASTHA AUTOMOBILES PVT. LTD. New Delhi
8.3
2020 Mahindra Thar
- 19,398 km
- Diesel
- Manual
Rs. 12.5 Lakh
₹ 26,440/month
INDRAPRASTHA AUTOMOBILES PVT. LTD. New Delhi
8.4
2019 Honda Amaze
- 19,798 km
- Petrol
- Manual
Rs. 5.75 Lakh
₹ 12,878/month
INDRAPRASTHA AUTOMOBILES PVT. LTD. New Delhi
8.4
2017 Renault Kwid
- 23,000 km
- Petrol
- Manual
Rs. 3.25 Lakh
₹ 7,279/month
Car Choice Exclusif Amberhai, New Delhi
Popular Maruti Suzuki Models
Upcoming Cars
Upcoming Bikes
Trending Vehicles In India
- Home
- News
- Auto Industry
- Indian Government Withdraws FAME Subsidies For Mild Hybrids