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Friday, May 7, 1999

Marurti board to chalk out Euro-II strategy on May 11 

PRESS TRUST OF INDIA  
New Delhi, May 6: The Maruti board will decide on May 11 its future course of action on making its cars compliant with the recent Supreme Court order on Euro emission norms.

The board is likely to take tough decisions, including hiking the prices of its models to offset the increased cost due to imports of multi-point-fuel-injection (MPFI) system that was expected to cost around Rs 30,000 per unit.

The Supreme Court's order and its adverse fall out on the company is on top of the agenda of the meeting, a top company official said.

Maruti, which has an unenviable share of over 80 per cent in the car market, is working out plans to advance the schedule for manufacturing MPFI kits in collaboration with Denso of Japan for making its models Euro compliant.

Company sources said it would not be plausible to make the kits indigenously before six months, adding MUL had originally planned to manufacture the crucial part by April 2000.

At present, none of the models in the Maruti stable -- Maruti 800, Zen,Esteem, Gypsy and Omni -- meet the Euro norms.

However, Maruti has been exporting the popular Zen, called Suzuki Alto in European markets, fitted with MPFI systems imported from Japan.

As the company is not in a position to start mass production of MPFI kits in the short run, there is no other option than importing equipment to retain its leadership position, company sources said.

Some of the top company officials have already left for Japan to discuss the situation with Suzuki and Denso as it wants to start commercial production of these kits as early as possible.

The company which registers about 27 per cent of its total sales in the national capital region (NCR), could not ignore this important market and was trying hard to come out with an early solution, sources said.

Maruti was surprised by the `sudden' ruling of the apex court banning registration of all private (non-commercial) vehicles in the NCR not conforming to Euro-II norms from April 1, 2000.

However, it has allowed registration ofonly 1500 vehicles every month conforming to Euro-I norms till the Euro-II deadline.

Due to the court order, Maruti has stopped dispatches of cars in the region as the self registration facility given by the Delhi government has been withdrawn.

Transport department is also finalising modalities to register limited number of vehicles in the region and till then, it has put a temporary ban on registration.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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