The government’s proposal to have cars fitted with six airbags from October 1, 2022 could run in rough weather. The auto industry has expressed doubts over airbag capacity creation amid semiconductor shortages and the ability of car makers to redesign their cars to fit the proposed six airbags within the specified timeframe.

A draft notification issued on January 14, 2022 by the Ministry of Road Transport and Highways (MoRTH) mandates vehicles of M1 category (passenger vehicles up to eight-seater), manufactured from October 1, 2022 to come fitted with eight airbags which would provide safety to its occupants from frontal and side-impact.

This change is understood to be one of the most defining regulatory changes in India after the jump to BS-VI (Bharat Stage VI) from BS-IV in 2020. Present regulations mandate carmakers to install two airbags (one for the driver and the other for the driver-side passengers) only.

Carmakers, through the Society of Indian Automobile Manufacturers (SIAM), are approaching the government to explore if the date for implementation of the notification can be reconsidered given a variety of issues ranging from airbag availability, cost escalation, and semiconductor shortage. A mail sent to SIAM remained unanswered at the time of publishing this article.

Semiconductor usage

Airbag deployment is controlled by sensors that are managed by semiconductors. The worldwide shortage of these crucial chips has already led to production losses for all carmakers. An increase in the number of airbags per car could lead to a further increase in demand for semiconductors, which would further strain the supply chain.

Rahul Bharti, Executive Director, Corporate Planning and Government Affairs, Maruti Suzuki India, said, “We are in discussions with the Ministry of Road Transport. It’s not just a cost, it’s the feasibility also. There’s an implication of semiconductors. So, it is a comprehensive topic in itself.”

Maruti Suzuki clarified that it is SIAM that is discussing the matter with MoRTH.

No one-size-fits-all

If the notification comes into effect, not only will the industry require three times the airbag supply, but car manufacturers will have to redesign the interiors of the vehicles too. As per the notification, cars “shall be fitted with two side/side torso airbags, one each for the persons occupying front row outboard seating positions, and two side-curtain/tube airbags, one each for the persons occupying outboard seating positions”.

‘Side/side torso airbag’ is mounted to the seats or side structure of the vehicle interior, deployed during a side impact crash to help mitigate torso injury. ‘Side-curtain/tube airbag’ is mounted to the side structure of the vehicle interior, deployed in a side-impact crash or rollover to help mitigate head injury or occupant ejection.

Sunil Bohra, Group CFO and Executive Director, Minda Industries, said, “Representations to the government are done because it will need a lot of changes to the design of the vehicle, which is time consuming. There is no one-size-fits-all. You will have to redesign the interiors and the development cycle is pretty long. Based on this success, the vendors will be in a position to expand capacity.”

Minda Industries, with an annual capacity of 1 million is the second largest manufacturer of airbags in India with a share of 15 per cent. The company is ready to expand airbag production but not before its clients finalise their requirements.

“While the government in its right intentions set October 1 as the date, practically this date will be very challenging. Our gut feeling is that it will be 1-2 years before we have 100 per cent implementation,” Bohra added.

Cost impact

While car manufacturers are yet to arrive at an estimate for cost escalation due to the addition of more airbags, market watchers estimate an increase of ₹10,000-15,000 per car. The airbag industry turnover is expected to swell to more than ₹4,000 crore from around ₹1,100 crore currently if the notification is implemented.

An increase in cost that will be recovered from the consumer will likely have an impact on vehicle demand in the short term. “(Airbag) capacity is being ramped up but at the same time there is a strong thought process on how this would be executed. It is a challenge and it’s not easy to hike capacity so quickly,” said an executive from Tata Motors.

Airbag history

The government made it mandatory for carmakers to provide an airbag for the driver from July 1, 2019 alongside safety features like speed alert system, driver and co-driver seatbelt reminder, reverse parking alert system, manual override for the central locking system.

Passenger-side airbag was made mandatory from April 1, 2021 and from June 1, 2021 for all existing cars. However, the date for the then existing cars to have passenger-side airbags was pushed forward by three months to August 31, 2021 and later to December 2021. From January 1, 2022 onwards, all cars come with two airbags as standard.

Related Topics
comment COMMENT NOW