In today’s newspaper I read that several manufacturers had echoed the sentiments of the Chairman of Maruti Suzuki, that in an extremely price sensitive market such as India, the introduction of safety features would increase the cost of vehicle sales and therefore buyers would turn away from such offerings.
Now I realise that for a “common man” a car from X Company with parking sensor and a Bluetooth/Aux/I-Pod Music System and Central Locking et. al. might be more alluring; however if we were to really look beyond the hyperbole, just how much really does it cost to add safety features to a car.
Cost of an Airbag for manufacturer
After some research I located the following information that roughly Driver+Passenger Airbag systems cost between-Rs. 35,000-Rs. 80000
[here] and
[here]. If any one has better information, please feel free chip in. However to bring in some realistic pricing
SX-4 Costing according to parts catalog for SX4 [for the purpose of this thread I am approximating the costs]
1. Drivers side A/B module -
Rs. 5358
2. Passengers side A/B module -
Rs. 6056
3. Airbag control module + main harness -
Rs. 4048
4. Passenger airbag harness -
Rs. 1627
5. Airbag sensor + harness -
Rs. 3076 Total cost: Rs. 20165
Source-
here
Thus, bringing the total [adding taxes and even some margin for overheads]=Rs. 30,000
Cost of ABS for manufacturer
Some browsing revealed that an ABS unit from Bosch would cost around Rs. 6,000
[here]
Thus total Cost for Airbags+ABS to the manufacturer=Rs. 36,000
Thus total marked up cost=Rs. 40,000
The Test Subjects-Maruti Suzuki Swift, Honda Amaze and Grand i10
All prices for OTR Price Gurgaon.
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Maruti Suzuki Swift
Lowest Version-
Lxi-Rs. 474,674 [Lxi+ABS if sold=Rs. 514,674]
1st Version with ABS+Airbags-
Zxi-Rs. 633,739
Differential-Rs. 158,975
What do you get in Zxi over the Lxi [data sourced from MSIL Swift Website]
System/Feature
Airbags ABS EBD Brake Assist
Central Locking with remote
Rear Parking Sensor
Driver Height Adjustable Seat
Front and Rear Headrests
Front Seat Pockets
Power windows
Rear defogger
Integrated blinkers
Electrically adjustable mirror
Remote boot opening
Coloured ORVM
Rear Wiper
Integrated music system with Bluetooth/aux and 6 speakers with Steering Controls
Alloy Wheels
Tachometer
Engine Start Stop System
Fog Lamps
___________________________
Honda Amaze
Lowest Version
E-ivtec-Rs. 531,774 [if sold with ABS+Airbags=RS. 571,774]
1st Version with Airbags+ABS-
SX- Rs. 682,286
Difference-Rs. 150,512
What do you get in SX over the E [data sourced from Honda Amaze website]
System/Feature
Airbags Pre-tensioners ABS
Vanity Mirror
Driver height adjustable seat
Front Seat Pocket
Body Coloured Mirrors
Music System with Aux/USB
4 Speakers
Body coloured Door Handle
Keyless Entry
Electric Mirrors
Rear Armrest
12V power outlet
Tachometer
______________________
Hyundai Grand i10
Lowest Version
Era 1.2 VTVT-Rs. 477,447 [if sold with safety features-Rs. 517447]
1st Version with ABS+Airbags-
Asta (O) 1.2 VTVT-Rs. 597,574
Differential-Rs. 127,104
What do you get in the Asta (O) over the Era [data sourced from Grand i10 Website]
System/Feature
Airbags ABS
Key-less Start
Vanity Mirror
Rear Parking Sensor
1 Extra power outlet
Driver Height Adjustable Seat
Front and Read Head-Rest [rear adjustable]
Rear windows are also powered
Rear Defogger
Bootlid opener with remote
Body coloured mirrors with integrated blinker
Rear wiper
Body coloured bumpers
Music system with USB/Aux/Bluetooth+1 GB memory
4 speakers
Alloys
Rear Spoiler
Leather wrapped steering
Steering Controls
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I believe that the above amply demonstrates that the price increase as a result of adding safety features is not as high as is sought to be stated. The bundle of course costs the staggering premiums being charged, however lets reflect, does a USB music system really help in reducing the chance of injury over an airbag?
In my opinion, the manufacturers, should offer the safety pack as optional, for fitment on any version, thus I might prefer to buy the lowest version+safety pack.
To use a cliche, knowledge is power, and I think we as Team-Bhpian's are uniquely positioned to bring out the facts.
I'm indebted to the numerous posts I've hyper linked. Thanks guys!
Assumptions
1. the prices of the features are assumptions, hard data where available has been provided to the best of my ability.
2. Choice of cars-mainly premium hatchbacks that sell fairly large numbers.
3. Prices of the cars are according to website and adding insurance+RTO as prescribed the Haryana RTO Website [I also used an on-road car pricing website]
@mods-please fell free to merge this thread if its similar to the costs debunked thread.