PL Sector Update - Auto - Bharat NCAP Crash Test launch

PL Sector Update – Auto – Himanshu Singh – Research Analyst, Prabhudas Lilladher Pvt Ltd

Bharat NCAP Crash Test launch:

- Launch Date: October 1, 2023.

- India becomes the fifth country globally to introduce its own car crash test rating system.

- Testing Cost: Rs 60 lakh per car under Bharat NCAP, compared to Rs 2.5 crore if done overseas.

- Testing Protocol:

- Ratings range from 1-5 stars.

- Three key tests: frontal impact at 64kph, side impact, and side pole impact at 29kph for cars rated 3 stars or more.

- Cars rated 3 stars or above must possess electronic stability control and front seat belt reminders.

- Rating points for 5-star: AOP 27, COP 41; Maximum scores: AOP 32, COP 49.

- Eligibility: Vehicles in the *M1 category* that carry up to eight passengers plus the driver, weigh under 3.5 tonnes, and are either produced or imported into India. This includes combustion engines, CNG, and electric vehicles.

PL view: The new Bharat NCAP provides a localised, cost-effective testing system, potentially boosting the appeal to Indian OEMs to get the vehicle tested. This is entirely voluntary and will likely be slow in adoption. However, we would see more emphasis on manufacturing of safer vehicles by the OEMs and increased awareness in customers' mind due to localisation of the testing process over the years.