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Old 3rd April 2017, 18:45   #16
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Default Re: No FAME subsidy for mild hybrids from April 1, 2017

I like this. It should have been since the inception of this law! Good that Government seems more sensible now
Next thing should be the GST to make the road tax common across Pan India.

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Old 3rd April 2017, 20:18   #17
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Default Re: No FAME subsidy for mild hybrids from April 1, 2017

The subsidy that is lost is only Rs 13K, which is not significant to price of Ciaz. Maruti can even absorb or give that much discount. The real gain of mild-hybrid is in the reduction in excise and infrastructure cess. Unless that is rationalized in GST, Maruti/Mahindra etc. will continue to milk the mild Hybrids.

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MSI's Ertiga and Ciaz, equipped with Smart Hybrid Vehicle by Suzuki (SHVS) technology, had received incentives of Rs 13,000 each under the scheme.
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Originally Posted by Dr.Naren View Post
Maruti has made use of this fully till date. Would the Nexa Ciaz prices increase now?? Nevertheless, it is still a good move by the government!! If this had continued, many more manufacturers would have followed the same. I am sure most of them would have already invested on it and Maruti should be happy as they have utilised this loophole to the max.
I always wondered at the logic of giving subsidy to these mild-hybrids. I agree overall that this is a good move. But if the Government should also have a proper policy and road-map on when they want to phase out incentives. For a company that spent lots of time and money to build systems, suddenly adding or removing incentives has an adverse effect. I know it's part of doing business, but its also a waste of resources that could have been put to better use.

Last edited by jetti : 3rd April 2017 at 20:20.
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Old 3rd April 2017, 20:49   #18
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Default No FAME subsidy for mild hybrids from April 1, 2017

I need to make a point here. Ciaz and Ertiga are the only mild hybrids that have gotten FAME subsidy. Apart from that only Camry Hybrid gets the subsidy in the hybrid category. It's not complete hogwash. There is some benefit (maybe even 1% better FE). FYI non-Hybrid Ciaz ARAI was 24kmpl and Hybrid Ciaz is 28kmpl.


The Micro hybrids of Scorpio (and other Mahindras) or splendor iSmart etc. don't get the subsidy.

This move is in the right direction not because of the manufacturers taking undue benefit of the loophole, but encouraging them to now move on to proper hybrids. This 13000 incentive could be just to show that developing hybrid systems in vehicles will be beneficial to consumers and manufactures.

Attached screen grabs from FAME website : these are the only 4 wheelers that get subsidy.

No FAME subsidy for mild hybrids from April 1, 2017-imageuploadedbyteambhp1491232443.277342.jpg

No FAME subsidy for mild hybrids from April 1, 2017-imageuploadedbyteambhp1491232454.417242.jpg

Name:  ImageUploadedByTeamBHP1491232466.712489.jpg
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Size:  95.3 KB

For more information -
http://www.fame-india.gov.in/ModelUnderFame.aspx


Edit - subsidy is given on ex showroom amount, Ciaz price shouldn't increase due to subsidy being removed. Rather the discount will go.

Last edited by blackwasp : 3rd April 2017 at 20:57.
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Old 4th April 2017, 10:08   #19
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Default Re: No FAME subsidy for mild hybrids from April 1, 2017

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Originally Posted by romeomidhun View Post
My understanding is that it's the subsidy of 13K which is withdrawn, and the lower tax of 13% as against the 24% (for bigger cars like Ciaz and Ertiga) vehicles is still in place. Correct me if I am wrong.
Bingo! Withdrawal of the FAME subsidy will have a marginal effect - at best - on the Ciaz' price.

That said, I'm hoping that common sense has finally prevailed & even the excise duty / GST for these lame hybrids will be brought on par with regular cars. Only FULL hybrids should get tax concessions.

The cancellation of the FAME subsidy might just be that step in the right direction.
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Old 4th April 2017, 15:28   #20
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Default Re: No FAME subsidy for mild hybrids from April 1, 2017

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Originally Posted by GTO View Post
Bingo! Withdrawal of the FAME subsidy will have a marginal effect - at best - on the Ciaz' price.

That said, I'm hoping that common sense has finally prevailed & even the excise duty / GST for these lame hybrids will be brought on par with regular cars. Only FULL hybrids should get tax concessions.

The cancellation of the FAME subsidy might just be that step in the right direction.
If this FAME subsidy would have continued , all of the manufacturers would have flooded the Indian Market with half hearted implementation of hybrid technology thus fooling the consumer . As this subsidy is withdrawn for mild hybrid vehicles it will pave way for actual hybrid adoption in the Indian Market . Indian consumer has one question in his mind "Kitna mileage deti hai" & hybrids are really good at this front .
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