The Ministry of Heavy Industries has now withdrawn mild hybrid vehicles from the FAME subsidy scheme.
The Government of India had launched the FAME scheme under the National Electric Mobility Mission Plan in April 2015. The Government provided subsidies to mild hybrid, strong hybrid, plug-in and pure electric vehicles under this scheme. This also included two high selling cars, Maruti Ertiga and Ciaz, which come with mild hybrid tech in the form of SHVS.
Both the cars from Maruti got a subsidy of Rs. 13,000/- under the FAME scheme. However, a notification from the Ministry of Heavy Industries states that mild hybrid cars stand excluded from the FAME scheme with effect from 1st April 2017. Phase 1 of the scheme has been extended to 30th September and vehicles retailed by dealers till 31st March won’t be affected.
Maruti, however, is confident that the withdrawal of this subsidy won’t affect them much. The company will continue offering SHVS on its vehicles and will even move closer to hybridisation in the future. The Ertiga and Ciaz SHVS also have the highest ARAI-claimed fuel efficiency figures in their respective segments.
Ciaz SHVS Subsidy
– W.E.F. 1st April, mild hybrid vehicles are excluded from FAME subsidy
– The Ertiga and Ciaz SHVS earlier had a subsidy of Rs. 13,000/-
– Maruti feels the withdrawal won’t affect them