BHARAT NCAP WHAT IT MEANS FOR THE AUTO INDUSTRY

With high safety standards, Indian cars will be able to compete better in the global market, increasing the export potential of car manufacturers in India

- SHRABONA GHOSH

Nitin Gadkari, Union Minister of Road Transport and Highways launched Bharat New Car Assessment Programme (Bharat NCAP) in New Delhi aiming to enhance road safety by elevating vehicle safety standards for up to 3.5-tonne vehicles in India. Bharat NCAP will be implemented from October 1, 2023. "The programme aims to provide a tool to the car customers to make a comparative assessment of crash safety of motor vehicles available in the market. Under this programme, car manufacturers can voluntarily offer their cars tested as per Automotive Industry Standard (AIS) 197," said a release by the ministry. "Based on the performance of the car in the tests, car will be awarded star ratings for Adult Occupants (AOP) and Child Occupant (COP). Potential car customers can refer to these star ratings to compare the safety standards of different vehicles and accordingly make their purchase-decision," it added.

Over the next decade, the automotive industry is likely to see some significant transformations at a global level. A relentless pursuit of economies of scale and scope in design and engineering of automobiles and components, while pursuing low-cost manufacturing destinations will fuel growth.

India aims to double its auto industry size to INR 15 lakh crores by end of year 2024. "There has been an FDI inflow of $33.77 billion in the industry from April 2000 till September 2022, which is around 5.48 per cent of the total FDI inflows in India during the same period," said a report named the Automobile Sector in India.

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