August 12

How much 6 Airbags will cost to Indian Car manufacturers

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How much would six airbags add to a car’s overall cost?

On an average, adding a frontal airbag to a car, costs between Rs 5,000-8000, while a side and curtain airbag (which is included in the total count) can cost much more. This would mean that each car sold in the small to mid-level segment would get a minimum price hike of approximately Rs 30,000 to over Rs 50000. The estimate is based on the expected price hike after the central government mandated that dual airbags be made compulsory on all cars sold in India, the date of implementation for which has been extended to December 31st, 2021.

Minimum hike of Rs 30,000 - Rs 50,000 will be there

An approximate minimum hike of Rs 30,000 - 50,000, in the likely scenario that manufacturers do not absorb a portion of the costs, the entry-level segment could be particularly affected, where such an increment would comprise a significant portion of the total price. A base-level Maruti S-Presso, for example, costs Rs 3.7 lakh (ex-showroom).

Adding nearly a third of the car’s total cost to the price would undoubtedly affect sales. Not only that, but most entry-level cars would have to have their chassis RE engineered to an extent as they are not structurally designed to provide the level of safety that comes with cars featuring six airbags.

Right now we have passenger segment cars like Freestyle, EcoSport, XUV3OO, Honda City, Skoda Kushaq, Tata Harrier, Volkswagen T-Roc and Jeep Compass provide 6 airbags within 25 lacs segment.

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