India’s biggest car maker, Maruti Udyog, has increased prices of some models to meet the technological cost of meeting more stringent fuel emission standards that come into effect in April.
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Reuters noted that auto companies have to make significant changes to engine technology in order to comply with tougher Euro III norms that enforce lower emissions of hydrocarbons and nitrogen oxide in a bid to cut pollution levels in the country. Eleven cities will shift to the new Euro III standards on April 1, while the rest of the country will move to Euro II norms.
Maruti Udyog managing director Jagdish Khattar told Reuters prices of the Zen and Wagon R compact cars as well as the Baleno sedan will be increased by between 10,000 and 15,000 rupees ($US228-342).
The news agency noted that the increase came a day after the company, 54.2% owned by Suzuki Motor, announced a marginal price increase on some models due to an increase in input costs.
Khattar reportedly said the introduction of new Euro III compliant versions of the 10 models that it makes in India would be staggered between now and April but declined to say how he expected the price increase to impact demand.
The auto maker said the introduction of technology to meet Euro III norms involved heavy investment by the firm and its vendors, Reuters added.
Khattar told the news agency the price increase would not entirely meet the cost of introducing Euro III technology and parts but the company would compensate for that through cost cuts in other areas.
Khattar told Reuters Maruti is aiming to increase the share of locally-made steel from 30% by boosting its purchases from Tata Steel Ltd. and Bhushan Steel and Strips Ltd.
