The airbag market in India will grow to ₹6,000-7,000 crore by FY2027, up to three times the current levels, claimed a study by ICRA. The existing market size ranges between Rs. 2,400 and Rs. 2,500 crore. This suggests that the airbag industry will expand at a CAGR of 25-30% over the next four years. With the country’s vehicle safety standards tightening further and the emphasis on safety features increasing, all automakers are increasingly integrating basic and mandatory safety features such as airbags to their vehicles, including entry-level passenger cars. Voluntary increases in the number of airbags per car to improve safety are also contributing to market growth.
Read More: 6 Airbags Mandatory in Cars from October 1
Previously, only one airbag per car for the driver was required beginning in July 2019. Later, the rule was upgraded to require dual front airbags for the driver and front passenger in M1 category vehicles (vehicles that may seat up to eight passengers and weigh less than 3. (simonsezit.com) 5 tonnes) beginning in January 2022. According to the most recent government rule, M1 category automobiles must have twin side airbags and dual side curtain airbags by October 2023. This mandate was imposed to protect the torsos of front-row outboard occupants and the heads of outboard occupants.
The necessary content per vehicle for airbag makers is anticipated to increase from the current 3,000–4,000 to 8,000–10,000 by October 2023, according to Vinutaa S, vice president and sector head at ICRA. “The average number of airbags per car sold is roughly three today, and this is likely to increase dramatically with the required introduction of six airbags per car from October 01, 2023. “The cost for OEMs could rise further depending on structural changes necessary in automobiles and the deployment of additional sensors,” she noted.