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Thursday, May 27, 1999

Maruti may expedite launch of new models 

Sudipto Dey  
New Delhi, May 26: The Maruti Udyog Ltd is likely to expedite the launch of the three new models which were to be introduced early next year. The decision is expected to be taken at MUL's board meeting on Friday.

The board will also decide on the work responsibilities to be given to Jagdish Khattar, who takes over as the second managing director from July 1. Other items on the agenda are working out of the company's future marketing strategy in light of the recent Supreme Court judgment on emissions, sources said.

Company sources, however, said that if the board decides to pre-pone the launch of the new models, technical reasons will not allow advancement by more than three months.

MUL had earlier shortlisted three Suzuki models, including variants of Baleno, Wagon-R and a new small car, for introduction into the Indian market in the next financial year.

Industry analysts said that the Wagon-R may be positioned below the Esteem and the Baleno wil be in the premium segment.

Officials however saidthat if a decision is taken to pre-pone the launch of these models, the launches might be expedited by at most three months due to technical reasons.

The board is also expected to take a decision on whether the existing models will be phased out in due course in view of the new launches. However, with existing models, such as 800cc and Zen, being a crowd puller, officials discount such a possibility.

Officials said the board is expected to take full cognizance of the emission impact on the company and suggest a long term strategy.

It may be noted that following the Supreme Court judgment on the emission issue, MUL had announced introduction of Euro-I compliant vehicles in the national capital region by June 1.

The company had earlier said that it would take a tab of Rs 5,000 and Rs 10,000 on account of increase in production costs. The company has decided not to pass off the extra cost to customers.

Mul had announced that it is preparing for full transition to Euro-II norms by April 1, 2000.

Theboard will also take up the issue of deciding on the responsibilities of Jagdish Khattar who as per recent government notification would take over as the second managing director from July 1, 1998. As per memorandum of understanding between Suzuki Motors India and Government of India, Khattar would take over as managing director from January 1, 2000. Till that time both Khattar and present managing director RSSLN Bhaskarudu would be managing directors.

Officials said that the board would also take up the annual accounts.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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