India Adopting First-Ever Crash-Test Standards, Key Automakers Would Fail [w/ Video]

Here’s an advancement that we all can agree will save thousands of lives each year: India’s very first-ever crash requirements for new vehicles.

The government of the world’s second-most-populous nation has concluded that its 1.2-billion people deserve airbags and other critical safety attributes we right here in the U.S. have taken for granted as common gear more than the previous 2 decades. The Instances of India reports that India’s road-transport ministry will mandate crash testing on all redesigned models starting in October 2017 and for each new vehicle sold by October 2019. Front and side crash tests modeled right after other new-car assessment programs (NCAP), such as in China, will be implemented when the government completes testing facilities. According to the Instances, India will not mandate any security gear but only demand minimum overall performance standards. (This is similar to some conditions in the U.S., where, for example, side-curtain airbags are not technically essential but should be installed in order to pass the test.) A star rating program also will be adopted.

The lack of any car requirements in India and scores of other developing countries has allowed major automakers to profit from promoting cheap, stripped-down vehicles—often many generations older than the ones sold in Europe, Japan, and the U.S.—to burgeoning middle classes eager for individual transportation. And despite how quirky cool it might be to watch brand-new Volkswagen Microbuses and other vintage rides roll off present-day assembly lines, in reality, they’re several magnitudes significantly less secure than totally modern cars. But this problem isn’t just about imported models that forego airbags and extra crash structure, it also encompasses autos like India’s own Tata Nano and the Nissan-built Datsun Go—which earned zero stars from a Global NCAP test—that have been engineered in the contemporary era to meet a cost point. Appear at the Go—a 2014 model, it have to be noted, not a 1994—crumple in its test and attempt to disagree that it disregards safety to an virtually vulgar level.

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Then there are these vehicles tested by Worldwide NCAP in the very first-ever round of independent crash testing of Indian-spec autos. The outcomes have been released final week.

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Worldwide NCAP, which is most likely to inform India’s personal regulations, tested base models of the Suzuki-Maruti Alto 800, the Tata Nano, the Ford Figo, the Hyundai i10, and a version of the Volkswagen Polo presently on sale in India with each other they represent 20 % of all Indian vehicle sales. None have been fitted with airbags, though they probably wouldn’t have mattered. The protection provided by these autos was so poor, the group mentioned, that there would be no way to avoid serious injuries in a normal crash test. All received zero stars.

According to the World Well being Organization, almost 134,000 people died from car crashes in India during 2010. Of these folks, 32 percent died riding on motorbikes, tuk-tuks, and other 2- and 3-wheeled automobiles that won’t fall beneath the new specifications. Another 21 percent died in buses and heavy trucks. But the WHO predicts that, assuming that regulations keep pat globally, traffic accidents—currently about 1.24 million every single year—will turn into the fifth-top lead to of fatalities worldwide by 2030, matching HIV/AIDS. Only 7 percent of the world’s population, according to the very same WHO study published in 2013, drives in countries with sufficient laws and enforcement for seatbelts, drunk driving, speed, helmets, and youngster seats.

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Does any individual truly deserve to die or turn into seriously injured from what may well be a minor crash in a much more stringently regulated country? That’s a question all automakers—whether or not they’re forced to by regulations—should be asking themselves prior to they ship substandard vehicles to creating nations.

India Adopting First-Ever Crash-Test Standards, Key Automakers Would Fail [w/ Video]

Light and commercial vehicle market adopting a cautious ‘wait and see’ attitude to new purchases

Steven Barker, Head of Secured Lending at Standard Bank

While the Reserve Bank remains confident that the economy is unlikely to fall into a recession, the possibility that South Africa could slide into a recession if a second quarter of negative economic activity is recorded, will impact on the sales of light and commercial vehicles alike, says Standard Bank.

The increasing pressure on the automotive sector has been particularly felt in the sales of new vehicles, says Steven Barker, Head of Secured Lending at Standard Bank. This has been apparent in the slowdown of credit growth within households, to its lowest level since November 2012 when it stood at a high of 10.4%. In April this dropped to only 4.6%.

Commercial vehicle sales are also under pressure across all categories. Fleets are getting older as replacement cycles are lengthened, and this has resulted in rapidly increased vehicle maintenance costs. Fierce competition for loads between transport operators is also leading to reduced profit margins, placing further stress on the sector.

When considering that fuel costs have increased considerably and continue to fluctuate, insurance premiums are up, and wear and tear increases as vehicles exceed their replacement cycles, and their values depreciate, the pressures within the commercial sector become obvious.”

“It was therefore no surprise that recent sales figures revealed that during May, domestic sales of new light commercial vehicles, bakkies and minibuses continued to decline year on year by 5.1% to 13866 units, although in comparison to April of the same year, we have seen a marginal increase in the number of units sold. Sales of medium commercial vehicles, at 752 units continued to dropped 14.4% year on year whilst new heavy trucks and bus sales increased by 4.3% to 1785 units.

“Vehicle Exports continue to show a sharp decline year on year at 40.5% with a total of 15613 units, some 10000 less units than May 2013. Expectations of increased exports rest heavily on an improved production in the second quarter and an introduction of another vehicle for the export market” Barker says.

With inflation creeping past the 6% ‘comfort level’ set by the Reserve Bank, many potential car and commercial vehicle buyers could also be delaying purchasing decisions, says Mr Barker.

“There was a welcome respite last month when the Reserve Bank decided not to increase the base prime interest rate-despite many predictions to the contrary.”

It can be expected, however, that rates are on their way up. More cautious vehicle buyers will consider this and the impact it could have on mortgages and other financial commitments. On the other hand, many buyers will stay in the market and either ‘buy down’ or look to acquire a pre-owned vehicle in the belief that buying now could pre-empt further increases later in 2014 and early in 2015.”

“A bright spot in an otherwise subdued outlook for the remainder of the year is that exports of the new Mercedes-Benz C-Class are expected to begin in July. This could see volumes of exports increasing and a recovery in export sales in the second half of 2014.”

Although various authoritative sources within the industry expect either a decline (Naamsa 3, 5%) in new car sales, there is consensus that the second-hand car market will show significant growth in the personal market.

“The value of sales in this arena will be bolstered by the number of low mileage vehicles that come on the market with portions of service and maintenance contracts intact. This sector will be made more attractive by expected subdued economic growth. Further price increases for new vehicles will be above the inflation rate due to pressure on the rand and interest rates.

“Whilst businesses are under strain, we urge business owners to weigh up the increased costs of servicing older fleets plus the increased down-time on your business versus purchasing new vehicles. When your maintenance costs out way the cost of a new vehicle, then the obvious choice of replacing becomes financially sound”

“Many will regard the purchase of a new vehicle at this stage of the year as a way of staying in the market, and will attempt to stabilise their motoring costs by defining their budgets and holding them at a set level. Mechanisms like balloon payments, no deposits, as well as competition amongst finance houses will undoubtedly assist these decisions.”

“Other buyers will purchase down to stay with their favourite car brand, with the belief that we have weathered recessions before, and that economic downturns are cyclical events. They will rationalise that where there is a downturn there must be an upturn, and that the purchase of a new vehicle should be seen in this light,” says Mr Barker.

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

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Light and commercial vehicle market adopting a cautious ‘wait and see’ attitude to new purchases