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ICRA Reports: Regulatory changes may raise commercial vehicle prices by 10-12%
Industry News- Sep 06,23
ICRA emphasized that the commercial vehicle (CV) sector within the Indian automotive industry is of particular concern, as it contributes significantly to vehicular emissions in the country.
According to ratings agency ICRA, the implementation of several proposed regulatory specifications has the potential to increase commercial vehicle prices by 10-12 per cent. In its recent report on the Indian commercial vehicle industry, ICRA highlighted the significant transformations taking place in the domestic automotive sector. The government is increasingly focused on enforcing emission standards, safety systems, and other industry standards to align with major global automotive markets.
ICRA emphasized that the commercial vehicle (CV) sector within the Indian automotive industry is of particular concern, as it contributes significantly to vehicular emissions in the country. It stated that mandatory standards related to driver comfort and safety can significantly enhance driving conditions and road safety.
Consequently, ICRA noted that there have been several recent regulatory interventions, including the rapid adoption of stringent emission standards and the introduction of safety and comfort standards such as advanced braking systems (ABS), speed limiting devices (SLD), and cabin blowers. These measures aim to reduce vehicular emissions and enhance road safety and driver comfort.
"While the implementation of these proposed changes may lead to a potential cumulative price increase of 10-12 per cent for vehicles, the benefits in terms of vehicle safety, driver comfort, export potential to developed markets, and more are expected to outweigh the cost," ICRA stated.
The ratings agency also highlighted upcoming regulatory changes, such as the mandatory requirement for air-conditioners (ACs) in driver cabins, which is set to take effect from January 1, 2025. Additionally, it mentioned other standards, including blind spot information systems, advanced emergency braking systems, roll-over protection systems, and driver alert systems, which are proposed to enhance road safety and reduce the frequency and severity of road accidents.
Furthermore, ICRA noted that specific regulations, such as the mandatory installation of fire detection, alarm, and suppression systems, have been introduced for certain segments like school buses and inter-city buses, effective from October 1, 2023.
Commercial Vehicle Prices
ICRA report
Indian automotive industry
Automotive Markets
Government Regulations
Indian Commercial Vehicles
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