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New Standards May Further Pull Down the Car Market

By Motortrend India Staff   |   07 December,2008

The Bureau of Indian standards (BIS) has announced a new set of standards that has to come into force from February next year. The notified set of standards comprises a host of items including the use of galvanized steel sheets.

If the car manufacturers fail to produce cars with the notified standards, the sales will again go down. This is because they have very less time to implement the new standards in their newly launched model which will temporarily endanger the production of the cars. This also includes the recently launched global car by Maruti Suzuki, A-Star, and Hyundai’s proposed small car, i20.

One of the Hyundai resource said, “There does not seem to be enough time to get this certification. We do use high tensile and galvanized steel across all our products that is not available here and it will get impacted.”

Hyundai spokesperson also added that the company will try to communicate on this with the government through SIAM. With such a short time in hand even big steel companies like Nippon and Posco are unwilling to meet the new standards, then how can car manufacturers stay at ease.

In response to the notified standards by BIS, I V Rao, Managing Executive Officer of Maruti said, “There are no doubts about on quality with the companies who export steel to us, but the quantum of exports is so minimal compared to their global production that they may not be too keen in getting themselves certified through BIS”.

In addition, the Director General of SIAM, Dilip Chenoy, said, “We will be speaking to the ministry of steel and BIS to get these categories out of the list. Without the exemptions there may not be subsequent quantity of steel available in the country in February.”

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