Airbag manufacturers to ramp up production in India

With the Government of India gearing up to introduce revised road safety regulations in the country, manufacturers of airbags are planning to set up new plants or ramp up production at existing plants, anticipating a rise in demand.

At present less than a third of the total number of cars sold in India are equipped with airbags. By 2017, the Road Transport and Safety Bill is expected to be implemented. This will see crash test made mandatory for all cars. Cars without airbags will score poorly compared to those equipped with airbags.

Airbag manufacturers, including international giants such as Autoliv, Takata, TRW Automotive and Toyoda Gosei, are expecting a rise in demand for their products and are taking steps to increase production to meet the demand. Producing airbags in India will help in keeping their costs down.

Rane TRW Steering Systems has invested Rs. 180 million in a new plant for the assembly of airbags. This plant has an annual manufacturing capacity of 5,00,000 units a year.

Toyoda Goesi Minda India is planning to increase the production capacity of its airbag plant by six times over the next three years. At present, the company holds a market share of 25%.

Annual car sales in India are expected to cross 5 million by 2020. Revenue from sales of airbags is expected to rise 11% per year.

Source: ET Auto