Cars to become costlier from April on Euro IV emission norms

Major automakers including, Tata Motors, Fiat, Hyundai, Mahindra and General Motors plan to up product prices with the government set to implement the new emission norms from April 1. It requires vehicles to be upgraded to run on cleaner Euro IV fuel-- to be used in 13 cities-- and Euro III in the rest of the country.

"We will increase prices across all models except the Chevrolet Beat and Spark in the first week of April by up to Rs 6,000 following the new emission norms," General Motors Vice-President (Corporate Communications) P Balendran told PTI here.
"We were compelled to increase prices after the Budget following a hike in excise duty rates. This will be the second price hike by the company after the Budget," Balendran said.

Several car-makers had jacked-up their prices after the Budget and if they do so again in April, it would mean that prices would be going up for the second time in less than two months.

From April onwards, India will adopt stricter emission norms under which 13 major cities will upgrade to BS IV from BS III and the rest of the country would move up from BS II to BS III as per the recommendations of the Mashelkar Committee to control pollution.

Hyundai Motor India also plans to increase prices across all its models in the first week of April by up to Rs 5,000.

"We will increase the prices in the first week of April in the range of Rs 4,000-5,000," Hyundai Motor Regional Sales Manager Kumar Priyesh said, adding that the company was ready to follow the BS IV standards from the stipulated date.
Home-grown Tata Motors and Mahindra & Mahindra also indicated that a price hike was on the cards after April 1.

"I cannot comment on the quantum of the price hike as of now. We will take a call once the new emission norms come into effect," Tata Motors President (Passenger Car Business Unit) Rajiv Dube, said.
Auto major Mahindra & Mahindra President (Automotive Sector) Pawan Goenka said, "We will increase prices across all our models after the implementation of the new emission norms."

The company would decide on its quantum soon, he added.
Other carmakers like Fiat India, Mercedes-Benz and Toyota are also likely to effect a price hike in April though they said they would take a call on the matter only after the new emission norms come into force.

"We will take a final call after the implementation of the new emission norms. We have not decided yet about a price hike," Fiat India Automobile Head (Corporate Communications) Marius D'Lima said.
According to the Society of Indian Automobile Manufacturers, about 1.22 million cars were sold in India during April 2009 to January 2010, showing growth of 25 per cent over the same period a year-ago.

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