Honda expresses Its concerns over FAME India Scheme

Honda will soon introduce its latest eco-friendly car – the Accord Hybrid – in the Indian market, and before its launch, the carmaker has expressed its concerns about the support given by the government to eco-friendly vehicles in India. For a fair competition, it has asked for a proper distinction to be made between fully hybrid and mild hybrid technologies.

Honda Cars India president and CEO Yoichiro Ueno told PTI that the subsidies offered to hybrid vehicles under the FAME (Faster Adoption and Manufacturing of Hybrid and Electric vehicles) India scheme are not sufficient in their current form. 

"There are different levels of hybrid technologies -- some are mild systems while some full hybrid systems. I think it is necessary to differentiate, otherwise the cost difference is there," he said.

As pointed out by Ueno, both mild and fully hybrid models get similar kind of benefits under the FAME India scheme that was launched last year. Besides, imported CBU models do not come under the ambit of the scheme, making them all the more expensive to own.

Both these factors have played against the Jap carmaker whose Honda Accord has a higher level of hybrid technology than the likes of the Maruti Suzuki Ciaz and the Mahindra Scorpio Intelli-Hybrid, and is also is a CBU import.

The Honda India boss also added that initial government support is necessary for hybrid vehicles to succeed in a country. "If I see other countries, hybrid technologies initially needed some government support. In most of the countries government initially supported with some reduced taxes or incentive to the customer," he said.

Source: CarDekho.com