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Telco takes U-turn to 697 to lift sales
Economic Times - January 8, 2001
IN A major attempt to increase volumes, commercial vehicle major Tata Engineering is bringing back the popular 697 range of engines. The company had stopped production of the 697 range around eight to ten months ago as it was a main casualty of the new emission norms and replaced by Cummins engine.
The 697 range of engines is now being turbocharged and made Euro compliant to be relaunched initially in the medium commercial vehicles and not in the heavy and light commercial vehicles. Price is one of the chief considerations for bringing back the old engine.
According to sources close to the company, commercial vehicles fitted with the 697 range of engines will be cheaper by around Rs 35-40,000 than the Cummins powered vehicles.
A Cummins engine driven truck is priced approximately Rs 85,000 more than the 697 engine. The 697 range is expected to make a difference to the sluggish MCV volumes which recorded a drop of as much as 40 per cent during the past year.
MCV operators have been the worst hit by the last fuel price increase and rationalization of sales tax. The general slowdown in the economy combined with the railways improving its efficiency and the bigger operators moving to HCVs, has caused the overall requirement for MCVs to shrink, sources said.
By relaunching the old engine, sources feel that MCV operators will be the biggest beneficiaries on account of the price factor. Telco has done a range of modifications on the 697 range to make it Euro compliant. The engine has been strengthened and engine life improved
