The Government has withdrawn incentives given to mild hybrid vehicles under FAME India scheme, impacting the country's largest carmaker Maruti Suzuki India the most.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 popularise 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 effected 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 Rs13,000 each under the scheme.
SVHS equipped Ertiga is priced between Rs7.17 lakh and Rs8.75 lakh while the same for Ciaz is between Rs7.87 and Rs9.57 lakh (ex-showroom Delhi).