Will go for Bharat NCAP 'star rating' only if customer wants it: Maruti

Says if buyers want BNCAP rating, they'll be charged for it

India’s biggest carmaker Maruti Suzuki would go for the Bharat NCAP ‘star rating’ for its vehicles only if the customer shows a preference for the mechanism proposed under the Bharat New Car Assessment Progr­amme, the draft of which was recently approved by the Ministry of Road Transport & Highways, said the company’s chairman, R C Bhargava.

“If customers start saying that they want cars that are safety rated, manufacturers will make it and charge customers for it,” Bhargava told Business Standard, stressing, as of now, it is volu­ntary and not mandatory to get cars rated.

“Why are you assuming that manufacturers have to follow it? Manufacturers are required to follow the government regulation, not the standards laid down by private organisations. It will become mandatory only if the government changes the regulation,” he said. At an event on Friday, he had argued that meeting BNCAP standards shouldn't be made mandatory and "we cannot follow the road safety measures of Europe''.

The Bharat NCAP is based on the Global NCAP -- a project of the UK-based charity Towards Zero Foundation to enhance cooperation among NCAPs of different regions. The BNCAP seeks to align Indian car safety standards with global standards.

Made-in-India cars currently follow the regulatory crash test speed of up to 56 kmph as part of the Automotive Indian Standards (AIS). If BNCAP ratings, which require cars to be crash-tested at 64 kmph (mainly related to driver and co-driver), get notified and take effect from April 1, 2023, and automakers like Maruti Suzuki choose to get their cars rated for safety, it shall mean manufacturers will have to add to the structural strength of their models and make a host of other changes to ensure a good rating.  

Such a move could lead to an increase of Rs 10,000-Rs 15,000 in material costs alone, pointed out an industry executive. Accounting for other safety features, such as airbags, the overall cost shall jump further, he said.

“Around four years ago, it would cost a carmaker Rs 10,000 for each star it wanted to add. Because of inflation, that cost has jumped significantly,” stated an industry veteran.

Testing time: BNCAP process

• Carmaker submits a popular model; submits additional variant voluntarily
• MoRTH nominates a model based on market intelligence
• Application by the manufacturer for BNCAP rating
• BNCAP Authority notifies carmaker for selection of test vehicle 
• It notifies test agency
• Conduct of test and assessment by test agency
• Submission of assessment report by test agency to BNCAP Authority
• Publication of results on website

Source: Draft notification, MoRTH

Bhargava declined to comment on cost implications, saying, “I would not like to comment on a hypothetical situation.” But the industry stalwart had been flagging concerns about the policy-driven cost escalation.

But not everyone agrees with Maruti's argument. “The customer is not competent enough for crystal gazing into the future. It’s the responsibility of the product maker and the company to foresee the requirement," says Avik Chattopadhyay of brand strategy firm Expereal.

So far, Maruti has met the regulations only when they are enforced, said Chattopadhyay. He said the customer may want a low cost of ownership but one cannot offer a product that compromises safety, Chattopadhyay has formerly worked with Maruti, Citroen, and Volkswagen.  

The BNCAP introduces the concept of safety rating for passenger cars and helps consumers make informed decisions. It shall promote the export worthiness of the cars manufactured in the country and increase the domestic customer’s confidence in these vehicles, according to the draft notification.

Unlike some manufacturers -- both homegrown and multinational -- Maruti hasn’t given much significance to the safety ratings by the Global NCAP for its models and is of the view that the standards used by the agency are not aligned with Indian driving conditions and traffic congestion. Some of the best-selling Maruti models, such as the Swift and the Baleno, have received low to poor ratings.    

Even as Indian car buyers are getting increasingly sensitive about safety, it is still not in the top five criteria when shopping for a vehicle, points out an auto industry executive. Still, it's time star ratings on safety were in place in India to help buyers make an informed choice, he said.

“All those who have been saying we don’t have our own standards and why to follow European standards will have no option but to comply. Though it’s not a regulation, it makes sense for manufacturers to get their cars rated,” said the executive cited above.

On Friday, speaking at a media event in New Delhi, hours after the draft notification on star rating was issued, Bhargava said: “The BNCAP should not be mandatory. India is different from the European market and we cannot follow the road safety measures of Europe.”  

Two-wheelers account for a third of road fatalities, but nothing is being done to make two-wheelers safer, he claimed at the event.

Bhargava has also been critical of the mandatory six-airbag rule that is likely to take effect from October 1. According to him, airbags alone cannot guarantee safety. He alleged that the GNCAP “is funded” by airbag manufacturers. But Chattopadhyay argued: “Whatever be the agenda, you cannot deny the greater cause.”

The not-for-profit organisation has been randomly testing passenger vehicles for the safety of made-in-India cars under the “Safe Cars for India Programme” since 2014. It has been running similar programmes for other countries.