India Business Journal - FADA asks auto cos to bear airbag cost

INDUSTRY

FADA asks auto cos to bear airbag cost

IBJ Bureau
Dec 31, 2020

The government’s proposal to make dual-front airbags mandatory will lead to increase in price, and vehicle manufacturers should absorb the major hike in costs to prevent impact on sales, the Federation of Automobile Dealers’ Associations (FADA) has said. In a draft notification, the Ministry of Road Transport and Highways (MoRTH) has proposed to make it mandatory for automakers to provide an airbag for the front passenger, over and above the existing airbag for the driver of passenger vehicles. FADA has noted that while the government’s vision to make driving safer for its citizens is appreciated, it will definitely increase the price of vehicles.