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May 13, 1999

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Maruti to roll out Euro-compliant cars by October; cleaner Hyundai Santro countrywide launch by May-end

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Maruti Udyog Limited is working towards making its vehicles Euro-II compliant by October 1999.

Although several options are being explored for the purpose, the company is likely to meet the norms by importing certain critical components and fitting them on to the vehicles, company sources said.

This would result in a Rs 25,000-30,000 hike in production cost, the sources added. ''this would result in an increase in the price of the cars but the quantum is yet to be decided.''

Maruti had, in the Supreme Court, stated today that the Euro I norms introduction date should be extended to October 1, 1999, else its production would be severely affected.

However, the apex court refused to extend the time limits fixed for the introduction of Euro I and Euro II emission norms for registration of private non-commercial vehicles in the National Capital Region.

Meanwhile, stung by the Supreme Court order, Maruti is dispatching more vehicles to markets outside the NCR to ensure that sales do not suffer a setback.

Meanwhile, Hyundai Motor India Limited's 999cc Santro would be costlier in the NCR. The company has decided to service rest of the nation with the existing Euro-I compliant cars.

The price hike in the NCR would be on account of the modifications of the car engine to make it Euro-II compliant.

''We have decided to launch the Euro-II-compliant cars by May-end in the NCR. However, we would not be restricting its sales to within the region. If any customer outside the NCR wants to own a Euro-II compliant car, he can have it,'' HMIL director (sales and marketing) BVR Subbu said.

However, he said the exact quantum of price difference is yet to be calculated. ''We are still working on it and the final estimates would be ready shortly.''

Effectively, the company would be producing two batches of cars -- one conforming to Euro-I norms and the other to Euro-II norms.

Hyundai has already stated that prices of santro would be revised upwards following a Rs 25,000 increase in production cost due to the modifications.

The new Euro-II compliant Santro is being rolled out in the wake of the recent Supreme Court judgement restricting registration of vehicles in the NCR.

UNI

The Supreme Court order on auto emissions and its impact on industry

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