Source: Business Standard, Nov 04, 2015
Mumbai: Automobile firms are likely to take their focus away from the mini-car segment as fears grow over tighter norms for emissions and crash tests.
Currently, India’s vehicular regulations are less stringent than those of developed markets. Regulators are expected to enforce stricter norms over the next few years, which besides addressing pollution, will push up the overall cost of a car.
N Raja, director and senior vice-president (sales and marketing) at Toyota Kirloskar Motors, said: “As a global strategy, we have decided to stay away from the segment below Rs 500,000. Cost of tech will rise significantly in the next five to six years in areas such as new emission norms and crash test. Pressure on pricing will go up.”