New safety norms may push up car prices

Any additional material, engineering or validation costs could push up prices by at least Rs 10,000 for an entry-level hatchback,” said an industry executive familiar with vehicle development. Stronger rear structures required Under the rear-impact requirement, all new cars manufactured in India from April 2029 must pass a crash test demonstrating that petrol and diesel models do not suffer fuel leakage, while electric vehicles must avoid battery damage.

Manufacturers have traditionally prioritised high-strength steel (HSS) in vehicle front structures, given the prevalence of frontal collisions. Its use in rear sections has generally been lower across several models. Compliance could require additional HSS at critical structural points, along with reinforcement around fuel tanks in internal-combustion engine vehicles and battery packs in electric cars.

These changes could increase vehicle weight and production costs, potentially pushing up ex-showroom prices. The objective is to reduce fire risks following rear-end collisions by protecting the fuel system or electric powertrain from impact damage. Safety rules to roll out in phases MoRTH has set April 2027 as the compliance deadline for updated standards covering offset frontal and lateral crash protection, pedestrian safety and immobilisers.

The rear-impact requirement will follow in April 2029. In a separate notification, the ministry has made Automotive Industry Standard AIS-192 mandatory for event data recorders fitted in cars from October 2029. These devices record crash-related information immediately before and during an accident, helping establish the circumstances of a collision. The price impact will depend on the modifications required for individual vehicles and the extent to which manufacturers absorb the additional costs.