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Ford India not happy with SC's car pollution order

Ford India Limited today opposed the arbitrary restriction of trade through proposed banning of registration of diesel vehicles in the National Capital Region.

The company called for excise benefits and duty exemptions for manufacturers who meet the Euro norms in advance of the statutory dates.

Ford India managing director Phil Spender said that though it will not move the Supreme Court pleading re-scheduling of the time table, ''all support would be extended to the industry association -- the Association of Indian Automobile Manufacturers -- in its action-plan.''

''We are opposed to the restriction but do not want to challenge the decision. The approach to improving air quality should rather be technology-driven,'' Spender added.

He also criticised the quality of fuel available in India saying, ''Even if we improve the technology and make them Euro-II compliant, the question is for how long could it be sustained with the present fuel quality. Quality of fuel is the principal issue and the government should address this with a time frame roadmap.''

Clean air, Spender said, can be achieved in a joint effort by the government and industry. ''Ford and many other automobile companies can provide the latest technology. However, the government must ensure provision of high-quality fuel. It is the joint responsibility of manufacturers, petroleum industry and the government to find long- and short-term solutions.''

Regarding the advancing of effective dates of meeting Euro-i and Euro-II norms by manufacturers, he said the pull-ahead should be mandated together with the necessary infrastructure.

''Besides, the government should follow best practices by compensating manufacturers who meet the emission norms in advance of the statutory dates by way of exemption in tax and duty rates to offset the technology and development costs,'' Spender said.

The company has decided not to pull ahead the date for meeting Euro-ii norms with its luxury sedan Escort and intends to limit its sale in the region with the prescribed norms of the Supreme Court.

However, Ford engineers in the United States, Britain, Germany and India are working together to find a solution to this latest development.

''Escort presently complies with the Euro-I norms and as per our plans, it will conform to the Euro-II norms by April 1, 2000. We are not planning to advance this date to July 1, 1999 as per the Supreme Court order,'' he added.

Since Escort sales in the NCR amounts to a mere 45 units per month, ''we intend to be under the prescribed limits of 1250 petrol units and 250 diesel vehicles per month''.

He further stated that Ford's next offering for the Indian roads, code-named C-195, would be Euro-ii compliant from launch.

The apex court had recently directed that all private non-commercial vehicles conforming to only Euro-ii standards will be registered in the region from April 1, 2000. It had further stated that all vehicles have to conform to the Euro-1 norms by June 1, 1999 failing which they will not be allowed to be sold.

Further, vehicles complying to the Euro-1 standards would be registered on a first-come-first-served basis with only 1,250 petrol vehicles and 250 diesel driven vehicles being registered in a month from July 1, 1999.

From April 1, 2000, no vehicle would be registered unless it conformed to Euro-ii standards.

This is also likely to increase on the premia for all vehicles, particularly Maruti cars for the two-month period till July. ''There will be a major rush for getting the vehicles registered before July and dealers and blackmarketers will charge premia on the same,'' an analyst said

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