No more subsidy to mild hybrids in India; move likely to affect Maruti Suzuki Ciaz and Ertiga

The government of India has removed the subsidy on Mild Hybrid vehicles given under the Faster Adoption and Manufacturing of Hybrid and Electric vehicles India scheme (FAME). The move, however, does not affect the subsidy for the hybrid, plug-in hybrid and pure electric vehicles, which remains intact.

According to a notification by the ministry of heavy industries and public enterprises, the Mild hybrid technology will stand excluded from the benefits of the FAME India scheme with effect from April 1, 2017. The latest move is most likely to affect the country's largest carmaker Maruti Suzuki's Ciaz and the Ertiga. Both were receiving a subsidy of Rs 13,000 under the FAME scheme. While there is no information on the change in the prices of the Ciaz and Ertiga as of now, the move may have an impact in the near future.

Mild hybrid

Unlike the common hybrid set-up where a forced induction motor gets extra power from an electric motor, mild hybrid models, or Maruti's SHVS ((Smart Hybrid Vehicle by Suzuki) technology uses an Integrated Starter Generator (ISG) and a high capacity battery to boost power. The engine stops automatically when the driver shifts the gear to neutral and releases the clutch. The engine gets restarted as soon as the clutch is pressed. The system also helps to save energy while decelerating/braking. The stored power in the battery assists the engine during vehicle acceleration, which improves efficiency.

FAME

The government of India introduced FAME (Faster Adoption and Manufacturing of hybrid and Electric vehicles in India) scheme in April 2015 to promote the sale of eco-friendly vehicles. The FAME offered incentives on electric and hybrid vehicles of up to Rs. 29,000 for bikes and Rs. 1.87 lakh for cars. The SHVS models of Maruti Suzuki benefited by up to Rs 13,000.