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Maruti to restrict Euro-I cars to NCR

Maruti Udyog Limited has decided to restrict sales of its Euro-I-compliant cars, production of which is to begin from June 1, 1999, to the National Capital Region.

Demand in the rest of the country will be serviced with the existing fleet, company officials said in New Delhi today.

This is part of MUL's two-pronged strategy under which it will meet the Supreme Court's order on emission norms and minimise the squeeze on its bottom lines.

The modifications being brought about in the cars to make them Euro-I-compliant will result in an increase in production costs of Rs5,000-10,000. "Keeping in view the interests of our customers and the large number of pending bookings, we have decided to absorb the entire cost ourselves. Doing it for the NCR alone will mean a substantial hike in production cost. So we are restricting sales of our vehicles to the NCR," the officials said.

Meanwhile, the company will prepare for full transition to Euro-II norms by April 1, 2000.

As per the Supreme Court directive on Friday, car manufacturers have been allowed to sell and register Euro-I compliant vehicles in the NCR without any restriction from June 1, 1999.

All Maruti vehicles will be fully equipped to comply with the Euro-I emission norms with slight modifications. While the Esteem and Zen diesel are already Euro-I compliant, the Maruti 800 and the Zen petrol will be compliant from June 1, 1999. "We are simultaneously working on the Omni and Gypsy," the officials said.

Prior to Maruti, Hyundai Motor India Limited had announced that its Euro-II-compliant Santro would initially be sold only in the NCR, which would effectively mean that the 999cc car would cost more in the region.

"We have decided to launch the Euro-II-compliant cars by May-end in the NCR. But we will not be restricting its sales to within the region. If any customer outside the NCR wishes to own a Euro-II-compliant car, he can pay the extra price and have it," B V R Subbu, HMIL director (sales and marketing), had said.

But the company is yet to decide on the exact quantum of price difference between the Euro-I and Euro-II models. Hyundai has already stated that its production costs would increase in the range of Rs25,000 per vehicle.

The Santro is available in three versions with the base model priced at Rs299,000 (ex-showroom Delhi), Santro DX with power windows and central door locking at Rs349,000, and Santro DX with power steering at Rs369,000.

UNI

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