Seat Belt On: Hike courtesy implementation of AIS 145 safety norms from July 1 onwards
Even though the automotive industry is going through its worst slowdown in decades, cars are all set to get more expensive as manufacturers look to pass on increased input costs arising from the implementation of new safety norms.
The implementation of AIS 145 safety norms from July 1, 2019, mandated the fitment of several features such as driver airbag, seat belt reminder for the driver and co-driver, rear parking sensors and an over-speed alert for all passenger vehicle models. This forced many original equipment manufacturers (OEM)s to heavily re-engineer their old models. Some models that could be very costly for re-engineering will be phased out.
Mahindra & Mahindra (M&M) announced on Wednesday that the price range of its personal vehicles will increase by up to Rs 36,000, across models. According to Rajan Wadhera, president (Automotive Sector), M&M Ltd, SUVs that will take a substantial price hike are the Scorpio, Bolero, TUV300 and KUV100 NXT, while variants such as the XUV500 and Marazzo will be marginally costlier.
Similarly, Honda is considering upping the price tag by about 1.2% to cover up rise in commodity prices as well as additional cost due to safety regulations. The company currently sells a range of models priced between Rs 4.73 lakh and Rs 43.21 lakh.
A senior sales executive at a Maruti Suzuki India Ltd (MSIL) showroom in Mumbai said the company has already passed on the price increase. "All cars dispatched after June 15 now come with an increased price tag in the range of Rs 15,000-20,000," he said.
The national automotive industry has been undergoing a prolonged spell of slowdown over nine months, with even festive seasons failing to bring cheer. According to the executives across OEMs, retailers and component makers, one of the primary reasons for this has been tightening of liquidity by non-banking financial institutions following the IL&FS crisis. Other factors include a rise in fuel prices, rural distress due to lack of rains, new insurance laws leading to an increase in costs and slowdown in certain industries leading to a dip in consumer sentiments.
Safety First
- Mahindra & Mahindra (M&M) announced a hike in prices, up to Rs 36,000, across models
- Honda is considering upping the price tag by about 1.2% to cover rise in commodity prices as well as
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