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May 14, 1999

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SC lifts restriction on registration of Euro-1-fit cars in Delhi

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The Supreme Court order today lifting restriction on registration of Euro-I complaint cars in the National Capital Region has come as a much-needed "breather" for the beleagured, choking car manufacturers.

They have hailed the directive, and are gearing up to meet the emission norms. While for the likes of Maruti Udyog Limited, this would offer enough time to pull up their socks and get their act together, for others, it is life back to normal.

Hyundai Motor India Limited executive director (sales and marketing) J H Kim said, ''We respect the Supreme Court order but this clarification would not result in any change of strategy for us. We have already made preparations to start producing Euro-II compliant cars by May-end and we are going ahead with this plan.''

Kim hinted that the price differential between the Euro-I and Euro-II compliant cars are likely to be minimal as '' we intend to absorb a good percentage of the Rs 25,000 cost hike.''

''We are a good corporate citizen and will do whatever we can do to help the customer.''

Hindustan Motors also hailed the judgement stating that the company can now sell its cars without any restriction within the NCR. All its cars already meet the Euro-I standards.

Meanwhile, the automobile industry also feels that the apex court's directive today would also signal a revolution that will make compressed natural gas-powered cars popular.

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