Proposed Auto Policy

of 56 km/h, which is lower than the 80 km/h European standard. The full-frontal impact test is against a rigid barrier while offset test is at a 40 per cent angle towards the driver’s side. The side impact test is for deformity where a moving barrier crashes into the car at the set velocity. While the first two tests would basically mean manufacturers would have to offer airbags as standard feature, the side impact tests would ensure manufacturers use crossbeams in door structures for safer cabin structure. It would also lead to curtain airbags becoming part of standard equipment.

While that makes cars and two-wheelers safer for occupants and cleaner to the environment, it would result in an increase in prices. The Society of Indian Automobile Manufacturers has forecast an investment of `1 lakh crore for upgrading products to meet various upcoming regula-

Source: Ministry of Heavy Industries & Public Enterprises The cess is over and above the 28 per cent base rate of GST on all cars