With the Government of India gearing up to introduce revised road safety regulations in the country, manufacturers of airbags are planning to set up new plants or ramp up production at existing plants, anticipating a rise in demand.

At present less than a third of the total number of cars sold in India are equipped with airbags. By 2017, the Road Transport and Safety Bill is expected to be implemented. This will see crash test made mandatory for all cars. Cars without airbags will score poorly compared to those equipped with airbags.

Airbag manufacturers, including international giants such as Autoliv, Takata, TRW Automotive and Toyoda Gosei, are expecting a rise in demand for their products and are taking steps to increase production to meet the demand. Producing airbags in India will help in keeping their costs down.

Rane TRW Steering Systems has invested Rs. 180 million in a new plant for the assembly of airbags. This plant has an annual manufacturing capacity of 5,00,000 units a year.

Toyoda Goesi Minda India is planning to increase the production capacity of its airbag plant by six times over the next three years. At present, the company holds a market share of 25%.

Annual car sales in India are expected to cross 5 million by 2020. Revenue from sales of airbags is expected to rise 11% per year.

Source: ET Auto

Earlier this month, we had reported that the government had slashed the fines to be imposed on manufacturers for manufacturing faulty cars and refusing to recall defective vehicles (click here to read report). Now comes the news that there is no proposal to make recalls of defective vehicles mandatory.

At present, car companies, under an initiative by the Society of Indian Automobile Manufacturers (SIAM) voluntarily recall vehicles if any defects surface. 100 vehicle owners need to complain for a company to consider issuing a recall.

The Ministry of Road Transport and Highways, in the draft of the Road Transport and Safety Bill 2015, had proposed a mandatory recall policy for vehicles. However, in a letter to the Lok Sabha, Minister of State for Heavy Industries, G. M. Siddheshwara has stated that that the government was not considering bringing such as legislation.

Since July 2012, when the voluntary recall policy was introduced, more than 7 lakh vehicles have been recalled in India.under the voluntary recall policy since July 2012.

Source: ET Auto

The Government had proposed fines of Rs. 5 lakh to be imposed on vehicle manufacturers for manufacturing faulty cars and refusing to recall defective vehicles. A jail term of 3 years was also proposed for offenders. However, in the latest draft of the Road Transport and Safety Bill, these amounts seem to have been reduced drastically.

Now, the amount of penalty for manufacturing a defective car stands at Rs. 50,000 and for not recalling one stands at Rs. 1,00,000. The proposed 3 year-long jail term, however, has not been changed.

The National Road Safety and Vehicle Regulation Authority of India, a new regulator, will be set up by the central government. This body will have the power to impose fines and take action against erring vehicle manufacturers.

Since 2012, automobile companies have been issuing voluntary recalls in accordance with directions issued by the Society of Indian Automobile Manufacturers (SIAM). The draft of the new bill states that, manufacturers will not be liable for a fine if they inform the authority as soon as they become aware of manufacturing defects. They will also be required to provide proof and recall the vehicle for avoiding the fine. Additionally, they will have to compensate the buyers for the full value of the vehicle. They also have the option of replacing or repairing the vehicle.

The old bill required complaints from 100 vehicle owners for a recall to be considered. According to the draft of the new bill, the national authority will take a call.

Source: ET Auto

Those looking to buy a new car in the coming years could be required to submit a proof of parking. Without it, the authorities are not likely to register your vehicle.

Under the Road Transport & Safety Bill 2014, the Government of India is looking to make it mandatory to have a parking lot before a person buys a car. Vehicle registration applications will have to be accompanied by proof of parking as specified by the government of the state that is registering the vehicle.

The bill is due for a parliamentary debate and approval. Car manufacturers are unhappy with the proposal considering the market has been sluggish for quite a while and if the bill is passed, sales could dip even further.

With the proposal, the government aims to increase awareness on the responsibility of having a parking space for car owners. It is possible that the proposal will be restricted to metro cities only where parking space is limited.

Source: ET Auto

In an attempt to improve road safety in the country, the Road Transport and Highways Ministry of the Government of India has presented a draft of a new Motor Bill that could send offenders to jail in certain cases. The ministry has sought comments from public and stakeholders on the Bill and will thereafter finalise it for presentation to Parliament during the ensuing winter session.

Here's a quick glance at some of the penalties that the Ministry has proposed through the Road Transport and Safety Bill 2014:

Penalty of Rs. 3 lakh and imprisonment for 7 years for causing the death of a child in certain circumstances.

Penalty of Rs 5 lakh per vehicle as well as imprisonment for faulty manufacturing design, besides cancellation of licences for rash and negligent driving.

Penalty of up to Rs. 1 lakh or imprisonment for a period of 6 months which may extend to 1 year for using a vehicle in unsafe conditions.

Penalty of Rs 25,000, or imprisonment for a term not exceeding 3 months and a six-month license suspension for first offence of drunk driving. Penalty of Rs 50,000 or imprisonment for up to one year or both and a one year license suspension. Any subsequent offence to result in the cancellation of the licence, and impounding of the vehicle which may extend for 30 days.

Penalty of Rs 50,000 fine with imprisonment for three years in the case of drunken school bus drivers. Immediate cancellation of licence in case of drivers in the age-group of 18 to 25 years.

Penalty of Rs. 15,000, licence cancellation for a month and compulsory refresher training for violating traffic signal three times.

The bill also provides for graded point system for imposing fines.

Source: ET Auto