Maruti Suzuki Ciaz boasts of Smart Hybrid Technology

The Maruti Suzuki Ciaz SVHS is not an ordinary car. The buzz that the car has created will ensure that Maruti has another feather in its cap. Ciaz's Smart Hybrid Technology (SHVS) boasts of building more fuel-efficient technology through features like power assist, idle engine start-stop, brake energy regeneration and gear-shift indicator.

But before you jump on the idea of buying the new Ciaz, a suggestion: this might just be the first of many launches in this segment, so it may not hurt to adopt the wait-and-watch policy.
The Ciaz raised eyebrows when the company revealed that the upgrade was launched at a lower price than its predecessors. Launched at an introductory price of Rs 8.23 lakh and going up to Rs 10.17 lakh (ex-showroom Delhi), the hybrid version is priced almost Rs 20,000 lower than the corresponding pure-diesel versions.

Maruti can thank the Indian government for this, and more specifically, the Ministry of Heavy Industries & Public Enterprises. In April this year, the Ministry announced the Scheme for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India-FAME India, which aims at encouraging hybrid and electric cars in India. The scheme ensured that Ciaz SHVS gets reduced excise benefit of 12.5 per cent instead of 24 per cent on the normal version, apart from Rs 13,000 benefit under the FAME scheme.

The incentives extend to all vehicle segments i.e. two, three and four wheelers, cars, LCVs, buses etc and all forms of hybrid (Mild/Strong/Plug-in) and pure electric vehicles. The government plans to allocate Rs 795 crore over 2015/16 and 2016/17 for this scheme.
As of now, few cars qualify for such discounts in India and the one reason is because the history of globally-acclaimed hybrid cars in India has been a painful one.

The Prius, the world's most-selling hybrid vehicle and a darling of Hollywood's green brigade, was launched in India in 2010, 13 years after it was launched in Japan. Few people ever saw one on the road, and the reason is simple: less than 200 models were sold in India. Prius' USP was its path-breaking technology, not its comfort, driving pleasures or acceleration. But since it came to India as a completely built unit (CBU), it has a logic-defying price of about Rs 35-40 lakh (courtesy 110 per cent customs tax).

Similarly, Honda also launched the Hybrid version of Civic as early as 2008, but it came at an eye-popping price of Rs 21 lakh. Later that year, Honda slashed prices by Rs 8 lakh before eventually discontinuing the model.

Cut to 2015, and Mahindra E20 and the Toyota Camry are the other two cars apart from Ciaz that stand to benefit among the existing models from the government scheme. The Mahindra E20 in fact, has passed the incentives provided under the FAME scheme to customers, slashing E20's price by about Rs 92,000 in April this year.

While it may be difficult to gauge the popularity of hybrid cars in India, it is only now that these cars are being given a level-playing field through discount incentives to compete with regular cars. Globally, the market for hybrid cars has seen a huge boost, with almost every car company, including Rolls Royce, working towards launching electric cars. Yes, it is unlikely that Rolls Royce's electric vehicle will generate much demand in India, but there are other automakers that can consider bringing their electric/hybrid models in India.

Nissan, for example, offers the Leaf, an all-electric car that claims a range of 100 miles, while Chevrolet has Bolt, which is a hybrid claims a range of nearly 300 miles. However, both are priced above $20,000 so the companies will have to do a sizeable amount of ground work to ensure that these cars find any takers in India. Nevertheless, in an industry bogged by slow demand, hybrid and electric cars might just be the perfect eco-friendly shot in the arm.