Maruti to meet Euro norms by Oct

NEW DELHI, MAY 13: Maruti Udyog Limited (MUL) is working towards making its vehicle Euro emission norm compliant by October, 1999. Though...

NEW DELHI, MAY 13: Maruti Udyog Limited (MUL) is working towards making its vehicle Euro emission norm compliant by October, 1999. Though 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 norm 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 (NCR).

Meanwhile, stung by the Supreme Court order, Maruti is despatching more vehicles to markets outside the NCR to ensurethat sales do not suffer a setback. It has already stopped deliveries to dealers in the NCR and are using these vehicles to meet the growing demand in other parts of the country, the sources added.

The company is also working closely with its 50 per cent owner Suzuki Motor Corporation (SMC) to find a way out of the crisis arising out of the recent Supreme Court judgement on emission norms.

“We have communicated details of the judgement to SMC officials and they are working to find a solution…We have not been able to come to any conclusion as yet,” the sources added.

The NCR accounts for about 23 per cent of the company’s total sales and having to stop sales in the region would mean a major blow to its sales.

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The sources pointed out that advancement of the effective date of Euro-I norms to July 1, 1999 has “created a situation where we are somewhat pressed for time.” In that context, we are looking at all our options to ensure that we carry out our business as normal.”

The company has alreadymade an investment of over Rs 600 crore to gear up its production to the manufacture of cars that meet the Euro emission norms by April 1, 2000.

Maruti claims that it is confident it has both the technology and the ability to meet the Euro-II emission norms. “It is not a technological issue since Maruti has the technology at its disposal anyway and was exporting cars to Europe to meet these and other stringent norms. It is more a question of time availability. Specifically, it is a question of logistics and access to manufacture and supplies of components to meet the new schedule.”