MSIL( Maruti Suzuki India Ltd.) believes that the Government should reconsider their 6 airbag command for passenger vehicles.
The Government of India is set to acquire the 6 airbag order for passenger vehicles from October 2022. This wouldn’t just increment passenger security specifically, however would make it more secure for road users overall. Nonetheless, there are certain automakers that are against this policy becoming effective.
As on date, all vehicles in India are furnished with just 2 airbags as standard – one for front passenger and one for driver, according to a Government order passed only a couple of years prior. There are vehicles which accompany 6 airbags in India, however that isn’t an compulsion at this point. With the new rule, Govt of India is making 6 airbags mandatory for all vehicles in India from Oct 2022. This won’t just make vehicles more costly however would likewise make it monetarily unviable particularly for car producers of smaller vehicles.
Production Cost May Go High
Maruti Suzuki is among these automakers who have voiced their anxiety with respect to the 6 airbag rule. They have looked for Government to rethink before bringing this guideline into impact; to gauge the unfavorable effect it could make. As of now a Leader in the small car segment,, Maruti feels that ordering a 6 airbag strategy will make these small car monetarily unviable.
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While leading a feasibility study of adding 4 extra airbags, Maruti states that the expense of its entrance level models could see an increment of up to Rs 60,000 in the last expense as it would require a few underlying changes in plan. The 5 most reasonable Maruti vehicles discounted today incorporate – Alto (Rs 3.25 L onwards), S-Presso, EECO, Celerio and Ignis. Of these, it is the Alto and S-Presso which are recorded as vehicles from their base portion.
This cost could go higher on account of bigger vehicles. Maruti Suzuki gathers, that it won’t just drive away expected purchasers from the little vehicle segmnet, however these inflated costs will likewise make it more hard for current bike proprietors to move up to a little four wheeler. Thus the destiny of little vehicles in India will hang in an equilibrium on the off chance that this standard is brought into impact.
The organization likewise expresses that it won’t be imaginable to fit a sum of 6 airbags into smaller vehicles. On the off chance that this guideline happen, we might see Maruti Suzuki prevent creation of little vehicles from its setup. Maruti Suzuki at present holds a piece of the pie of 70% of the hatchback section in India while Hyundai, Tata, Honda and Renault are likewise different players in this portion.
MSIL May Exit from Small Car Segment
MSIL Chairman RC Bhargava said the expense of section level vehicles will increment following alterations in plan to consolidate the additional 4 airbags which would be financially unviable for the organization thinking about that unfavorably affecting sales is bound. Subsequently the organization wouldn’t hold back to leave the Small cars market which would be unviable assuming this new government command is presented.
Original Source: Maruti May Exit Small Car Segment – Alto, S Presso, EECO, Celerio