India’s largest car manufacturer maruti suzukiLtd., which also happens to be the undisputed leader in the small car segment, has urged the Center to reconsider its proposal to make the use of 6 airbags mandatory in all cars. The proposal, which is yet to be turned into a rule, aims to enhance the safety of commuters on Indian roads. However, Maruti Suzuki feels that fitting six airbags inside smaller cars may not be a practical idea.
Maruti Suzuki is a leader in the four-wheeler segment in India thanks to its widely popular range of small cars. It offers small cars like Alto, WagonR, Swift, Baleno, Celerio and Espresso. At least four of these cars regularly appear as best-selling models in India almost every month and contribute a major part of Maruti Suzuki’s sales in India.
Maruti was reacting to the proposed norm of installing at least 6 airbags in all cars that can accommodate 8 people. If approved, the new norms will come into effect from October. The carmaker feels that amid a slump in the small car business, the new norms could mean a hike in the prices of such cars and further reduction in the number of buyers in the coming days.
RC Bhargava, chairman of Maruti Suzuki, was quoted by news agency PTI as saying, “It could be in the range of 20,000-25,000, which is a lot of money for a small car buyer,” he said as he explained what kind of price hike the carmaker is hoping to add 6 airbags to a small car. Or not. He further added, “I think, we will be the first countries to do so… so in the industry we think that this is not the right time to introduce six airbag rules. We want the government to reconsider the matter.
Bhargava said that due to several regulatory rules like BS6 emission norms, the price of small cars had to increase in the last few years. In recent times, rising cost of living has also contributed to the rise in the prices of vehicles across the industry. Bhargava feels the price hike will deter two-wheeler owners from upgrading to a four-wheeler and it will impact business, especially in non-metro cities across India.
“So, the fear is that this (six airbags) will shrink the market. The car manufacturing sector is important as it is a major producer of employment. When a car is sold in the market it creates many jobs – driver, maintenance, repair, accessories etc. If the car market is happening in the last three years, it will have an adverse impact on job creation and economic growth,” Bhargava was quoted by PTI.
Maruti Suzuki currently has a market share of over 70 percent in the hatchback segment in India. Other players in this segment are Hyundai Motor, Tata Motors, Honda, Renault.
Maruti Suzuki is a leader in the four-wheeler segment in India thanks to its widely popular range of small cars. It offers small cars like Alto, WagonR, Swift, Baleno, Celerio and Espresso. At least four of these cars regularly appear as best-selling models in India almost every month and contribute a major part of Maruti Suzuki’s sales in India.
Maruti was reacting to the proposed norm of installing at least 6 airbags in all cars that can accommodate 8 people. If approved, the new norms will come into effect from October. The carmaker feels that amid a slump in the small car business, the new norms could mean a hike in the prices of such cars and further reduction in the number of buyers in the coming days.
RC Bhargava, chairman of Maruti Suzuki, was quoted by news agency PTI as saying, “It could be in the range of 20,000-25,000, which is a lot of money for a small car buyer,” he said as he explained what kind of price hike the carmaker is hoping to add 6 airbags to a small car. Or not. He further added, “I think, we will be the first countries to do so… so in the industry we think that this is not the right time to introduce six airbag rules. We want the government to reconsider the matter.
Bhargava said that due to several regulatory rules like BS6 emission norms, the price of small cars had to increase in the last few years. In recent times, rising cost of living has also contributed to the rise in the prices of vehicles across the industry. Bhargava feels the price hike will deter two-wheeler owners from upgrading to a four-wheeler and it will impact business, especially in non-metro cities across India.
“So, the fear is that this (six airbags) will shrink the market. The car manufacturing sector is important as it is a major producer of employment. When a car is sold in the market it creates many jobs – driver, maintenance, repair, accessories etc. If the car market is happening in the last three years, it will have an adverse impact on job creation and economic growth,” Bhargava was quoted by PTI.
Maruti Suzuki currently has a market share of over 70 percent in the hatchback segment in India. Other players in this segment are Hyundai Motor, Tata Motors, Honda, Renault.