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Hindustan Motors, which was barred from selling diesel variant of Ambassador cars in all the major Indian cities on technology-constraint, today received its much-awaited Automotive Research Association of India (ARAI) certification for its newly launched BSIV compliant diesel engine.
This will allow the company to sell the its BSIV compliant diesel Ambassadors in all the 13 cities, where it could not sell its product for the last three yaers. The BS-IV-compliant diesel engine was made mandatory in 13 major cities with effect from April, 2010.
While sales of ambassador taxis were suspended in West Bengal only in April, 2011, a year after BS IV norms were rolled out, the state government allowed HM to sell BS III taxis in the replacement market for another 12 months. This deadline was later extended to May 2013.
However, since then it was unable to sell diesel Ambassador even to Kolkata's taxi segment, which has contributed almost 25% of he total Ambassador sales last year. The company recently launched BS IV compliant diesel car, but was awaiting ARAI approval to hit the market.
'With the ARAI certification, we will be able to roll out BSIV cars over the next few days,' a company official told Business Standard
As HM was not allowed to sell BS III car in Kolkata's taxi market for the last couple of months, sensing the opportunity, Tata Motors recently launched BS IV compliant Indigo exclusively for Kolkata's taxi segment.The Indigo taxi is priced at Rs 4.57 lakh, at the same price level of BSIV compliant Ambassador, which has been launched but yet to hit the market.
'Now we will be back to Kolkata's taxi market in days' time,' said the HM official.
