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Telco estimates Rs 50,000 cost hike to meet Euro norms

Telco has estimated an around Rs 50,000 surge in production cost per vehicle as a result of the modifications required for making its passenger cars, particularly the Indica, conform to Euro-II emission norms.

Telco sources said that the company is working aggressively towards making all its passenger vehicles Euro-II compliant. ''Although no dates can be given at present, we are confident of making our vehicles meet the emission norms soon,'' the sources added.

The cost hike would be by way of several modifications and imports which the company would have to resort to for meeting the norms as per the Supreme Court order. However, it is yet to be decided whether the cost hike would translate into an increase in the final price tag of the vehicle.

''Final decision on the matter would depend on the pricing strategy of competitors,'' the sources added.

The sources further pointed out that though the company is in talks with its vendors for supplying the specialised components for meeting the norms, ''we are also open to direct imports if need be''.

''Our cars already meet the Euro-I norms and it would not be much of a problem for us to make them Euro-II compliant. It will be done soon.''

Besides, other car manufacturers in the country are also rushing towards making their cars Euro-II compliant.

Hyundai Motors India Limited has already stated that prices of Santro would be revised upwards following a Rs 25,000 increase in production cost per vehicle due to the modifications being done to meet the Euro-II emission norms. However, the company is also yet to decide on the extent to which this would be passed on to the consumers.

Meanwhile Fiat and Ford India limited have stated that they would restrict their car sales in the NCR within the prescribed limits of the Supreme Court till their cars are made Euro-II compliant.

UNI

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