Will car makers scrap their existing models to accommodate new safety norms?

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Added in: Features

Global NCAP Crash tst Indian Cars Suzuki_Maruti_Alto

With the new safety norms in place, automobile manufacturers are now facing a new dilemma as they have to mandatorily provide safety features such as anti-lock braking system and airbags in their vehicles. Due to these new norms, car makers now have to upgrade their existing model designs in order to accommodate these safety features.

Car makers will now also have rework on their chassis to pass the mandatory crash test. All these changes will result in rise in cost of production by up to Rs 50,000-70,000. But will the cost conscious Indian consumer accept this rise in price?

In a country where people are ready to give up rear-view mirrors to buy get vehicles as cheap as possible, rise in prices for the addition of such safety features will not go down so well. Other than the addition of safety features, improvement in the chassis and shell of the car will also result in addition of research and development cost which will further add to the production cost which, in turn, will increase the final selling price.

Whatever the end result is, one thing is for sure, car makers will have to scrap their existing models that are not likely to pass the new safety norms. This may result in end of production of many cars. We feel that the process should be in a phased manner as a sudden implementation of such rules will result in steep rise in prices of vehicles which will in turn result in fall in demand.

Do you agree with government’s decision to implement these safety rules or would you still like to have it as an option? Share your opinion and thoughts through comments below.

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Source: ET Auto