GOVERNMENT DEFERS MANDATORY SIX AIRBAG RULE IN PV SEGMENT BY A YEAR
News:
The government has deferred the proposal of making six airbags mandatory in passenger cars by one year to October 1, 2023. The government had earlier planned to make six airbags mandatory from October 1, 2022.
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This move came on expected lines as various management commentary guided about discussions with government for deferring said regulation as adding additional four air bags would cost additional ~Rs 8,000-10,000, which would result in additional burden on small car buyers specially considering steep increases in car prices due to hike in commodity prices. It also involved making some changes in car design layout warranting time required by OEMs. In our coverage, it is a tad positive for Maruti Suzuki due to its vast customer base in entry level cars (~64% market share in PC segment).
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