Search the Internet          Tips  Sites: Finance, Investment

Maruti likely to bag Bombay CNG-taxi order

V Phani Kumar

Maruti Udyog is likely to emerge as winners in grabbing a bulk order for 10,000 vehicles from the Mumbai Taximen Union. The cabbies' union has found favour with the CNG version of Maruti Omni, preferring the van over stiff competition from Hindustan Motors' Ambassador, Tata Engineering's Indica, Fiat's Uno and Premier Automobiles' Padmini.

A L Quadros, general secretary of the union said, "We are in talks with Maruti Udyog for placing the order. A decision is likely to be taken on Friday, the 26th of this month. We have already placed a sample order for 51 CNG version Omnis from the company."

Auto analysts have said that the order would benefit Maruti Omni's sales substantially. Omni's sales, which have substantially fallen over the past two years due to a shift in customer preference, will get a "shot in the arm", they said.

The Mumbai Taximen Union's need for placing a bulk order arose in the wake of the Supreme Court's order to ban older than fifteen years in Delhi. The report from the Lal committee, which is preparing a blueprint for phasing out old taxis in Bombay, is currently awaited.

It is expected that over 16,000 taxis will be phased out in the near future. Also, about 60,000 taxis in the city will have to be phased out over the next five years, in order to conform to emission norms, industry sources said.

The cabbies union had recently moved the Maharashtra High Court seeking a four per cent reduction in sales tax and excise duties, in addition to abolishing the four per cent octroi. It is also in talks with Punjab National Bank for availing loans at 11-12 per cent.

Powered by

YOU MAY ALSO WANT TO READ:
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report