Hybrid Cars Likely To Get Cheaper - FAME 3 Scheme Incoming

The third edition of the Faster Adoption of Manufacturing of Electric Vehicles (FAME-III) scheme with an outlay of about Rs 10,000 crore is expected to be rolled out within the first 100 days of the new government coming into the picture next month. The scheme is likely to offer financial incentives to electric vehicles including two-wheelers, three-wheelers, and the buses owned by the government. However, the inclusion of EVs for institutional buyers, e.g., taxi aggregators are yet to be confirmed. Another big news is that the Government might consider hybrids for the FAME 3 subsidiary scheme, which could be a game changer for hybrid car manufacturers. 

Purpose of FAME 3 Scheme

The FAME scheme was introduced to encourage local production and sales of electric vehicles by boosting demand incentives to end customers. However, it is yet to be decided whether the FAME 3 will offer any subsidies for electric cars.

Although it is also said that the current proposal under FAME 3 might offer incentives for EVs priced under Rs 15 lakh, similar to FAME 2. Additionally, hybrid cars are also likely to get support under the FAME 3 scheme.

The government is preparing to bring fresh guidelines in the FAME 3 so the companies willing to avail benefits can seek re-certification.

Automakers to Make More Hybrid Cars

Since electric cars are the future of the automotive industry, many customers might not find it comfortable to switch from petrol to electric. To build comfort, some popular car brands like Maruti Suzuki, Toyota, and Mercedes offer hybrid models in the market. The hybrid powertrain consists of a regular combustion engine, electric motor and battery pack. This system offers better fuel efficiency while saving costs and promoting cleaner air. 

On receiving incentives for the electric cars and hybrid models, other automakers may also be encouraged to produce more such options for the customers, Maruti Suzuki has already announced to launch of Series hybrid powertrains in some of its existing models. The Fronx hybrid is scheduled to be launched sometime in 2025. Kia and Hyundai are also evaluating hybrid cars for the Indian market.

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