However, Hyundai is expected to raise the price of Santro, the base model of which carries an ex-showroom price tag of Rs 2.93 lakh, in the capital. "While the cost push factors are expected to result in an upward pressure on prices in the range of Rs 25,000, the company is yet to decide the extent that can be passed on to the customers," according to a company statement issued here.

Hyundai's announcement to comply with the Euro-II emission norms within five days of the Supreme Court order and over 10 months ahead of the April 1, 2000 deadline set by the court is perceived to be another setback to Maruti Udyog whose most popular 800-cc and 999-cc Zen models are not even Euro-I compliant.

Daewoo Motors' 800-cc Matiz is the only other car in the sub-Rs 3 lakh price category to comply with Euro-IInorms. Both Daewoo and Hyundai are expected to step up their marketing drive to woo customers in view of Maruti Udyog's handicap.

Hyundai will start mass production of Santro later this month after obtaining emission certifications.

Welcoming the Supreme Court judgment, Hyundai Motor India's managing director YS Kim said plans to introduce the Euro-II compliant Santro was part of company strategy to achieve market leadership through superior product technology and features.

The 12 valve, 4-cylinder MPFI Hyndai Epsilon engine that powers Santro, has been engineered to meet the Europ-II standards, the company said.

In April, the first month of the current fiscal year 1999-2000, the company sold 3,531 units. HMIL had closed 1998-99 with total sales of 17,647.

Meanwhile, Hindustan Motors officials claimed that by conforming to the Year 2000 norms as certified by the Automobile Research Association of India, the company's vehicles automatically adhere to the Euro-I norms.

However, the company plans toseek clarification on the issue from the Supreme Court through the Association of Indian Automobile Manufacturers (AIAM), HM officials said.

The company is expediting its schedule to meet the Euro-II norm by the April 1, 2000 deadline, sources added.

Maruti Udyog top management led by RSSLN Bhaskarudu is believed to have held a meeting with Maruti dealers in Sunday in the wake of the crisis facing the company. Maruti stands to lose sale of 4,000 to 5000 vehicles in the national capital region following the SC order. The court has restricted the registration of non-commercial vehicles not complying with Euro-I norms to 1250 petrol and 250 diesel vehicles per month.