With the growing demand of cars in the Indian market undoubtedly the competition is going high and the car manufacturers and trying to provide the best possible features in limited price in order to allure the customers. But with the Indian Govt. having introduced the new transportation safety standard in the country, the car prices are supposed to hike 20k to 80k in the coming years. The tentative time frame for the hiking in price is assumed to be the first week of April 2020.
So if the Safety and transportation Standards fixed by the Indian Govt. applied to each single car in the coming days, then the Petrol cars will see a minimum price hike of Rs. 40k and the Diesel cars will be Rs. 80k more costly. Besides, the automobile industry forecasts that due to the hike in price of the car equipment, accessories and change in the exchange rate betwen Rupee and Dollar, there might be another 20k hike in both the petrol and diesel segment cars.
Keeping in mind the growing accidents in the Indian roads, recently the Indian Govt. made the safety features such as Airbags, Anti lock braking system (ABS), High Speed Alert, Back parking sensor, and Sit Belt Reminder mandatory for all cars manufactured after 1st July 2019. As per the Govt. data every year around 1.4 lac die in road accidents in India which 400 times more than the death rate caused due to terrorism. Seventy percent of these accidents happen due to the mistake of drivers.
The Cost Estimation
Now let’s take a look on how much what will cost in the upcoming cars. As estimated by the manufacturers, every single Airbag will cost around Rs. 10k and Airbags will now be compulsory for all sits. Before almost all companies were providing Airbags for front two sits only. Similarly all car manufactures have to follow the NCAP (New Car Assessment Programme) standard for crash test and hence it will cut additional cost from their poke. Because back car parking sensors will be mandatory, so these sensors would cost at least Rs. 10k and more 8k will be invested for camera and display system. Also the manufacturers have to invest heavy for activating the Speed Alert System in cars.
But if the Stage 6 transportation standard is implemented in India in 2020, then on an average the petrol cars will be hiked around 20-30k from the current price standard whereas the diesel cars will be hiked around 80k to 1 lac. But ultimately there will be a huge gap created in the price range of diesel and petrol cars. Now this cost is confined into 80k to 1 lac.