The subsidies provided to the hybrid vehicles to encourage eco-friendly vehicles are insufficient, this was stated by Honda Cars India.
The Japanese firm urged for a clear distinction between fully hybrid and mild hybrid technology for equal distribution of resources. Honda is set to launch its Accord hybrid this month in India.
Honda said that the subsidies which are currently offered under the FAME scheme are not sufficient. As the difference in the technology of mild hybrid and fully hybrid is vast, there is a significant difference in cost.
Honda Cars India, President and Ceo Yoichiro Ueno said, "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."
Currently, Indian car makers, Maruti Suzuki and Mahindra sell some of their models equipped with mild hybrid technology. These models are affordable compared to fully hybrid technology.
However both the mild and fully hybrid cars enjoy the same benefits from the government's FAME scheme, which was launched last year to boost eco-friendly vehicles.
Also, the completely built unit models do not come under the FAME scheme, this makes it even more expensive to own a fully hybrid Honda car.
Ueno said that the FAME scheme from the government of India is not enough to push the sales of hybrid vehicles in the country. According to him government should come up with a solution to compensate the price difference between a mild hybrid and fully hybrid vehicle.
Ueno also believed that with the launch of Honda Accord Hybrid on October 25, it will help the Japanese firm to analyse the response from Indian customers towards hybrid vehicles.