Market Trends of India Airbag Systems Industry
This section covers the major market trends shaping the India Airbag Systems Market according to our research experts:
Implementation of stringent safety standards by regulatory bodies
Automobile manufacturers and auto-component makers choose India as one of their favored economies for setting up production plants. Several companies collaborated with the local automotive manufacturer to export the vehicles per government regulations. The Indian automotive and auto-ancillary industry is supported by several factors, including the availability of low-cost skilled labor, robust R&D centers, and low-cost steel production.
Because India is a price-sensitive market, many customers do not want airbags in passenger vehicles. As a result, the manufacturer only offered driver airbags in some early hatchback variants to save money. However, with the growing number of on-road vehicles and the increase in road accidents, the governing bodies are focusing on enhancing in-vehicle safety. Aiming at the same, since April 2019, the Government of India has mandated driver-side airbags. Similarly, the passenger-side airbags were mandated in January 2022. Also, the government has plans to mandate six airbags (two front side airbags and four curtain airbags) in vehicles manufactured from 1st October 2022 onwards. Such government regulations are likely to attract global airbag manufacturing companies into India.
The Indian automotive airbag industry's fastest-growing segment is curtain airbags. They're generally installed on the roof above the side window, side of the seat, or door panel. Curtain airbags protect the adult's head in the event of a collision. Curtain airbags have been shown to minimize the probability of a driving fatality by 45 percent. Pedestrian airbags have been increasingly popular in recent years. When a car is poised to collide with a pedestrian, these are immediately deployed.
Vehicle recalls associated with the airbag issues
OEMs attempt to strike a balance between price, performance, and safety. Due to regulatory bodies, OEMs have begun to offer driver airbags as a standard feature, which previously came at an additional cost. All premium vehicles are outfitted with airbags, including knee airbags, rear passenger airbags, and others.
There have been many recalls of vehicles due to faulty airbags over the years. For instance, In April 2021, Honda Cars India announced a nationwide voluntary recall for 77,954 vehicles manufactured in 2019 and 2020. In March 2021, Toyota recalled 9,498 units of the Urban Cruiser that seem to have a possible issue with the driver-side air bag module assembly.
To decrease the number of accidents happening. The Indian government has taken several initiatives with carmakers to make cars safer and more reliable. As the number of accidents increases, so does the demand for passenger car airbags across the country. However, vehicle recalls associated with airbag issues are likely to have a negative impact on the brand image of OEMs as well as the airbag manufacturers, which is likely to hamper their revenues and profit margins.
