Union Transport Minister Nitin Gadkari on Friday made a statement to make six airbags mandatory in all eight-seater private vehicles, after which there was a rise in auto stocks on Monday.
Gadkari on Friday approved a draft gadget notification making it mandatory to have at least six airbags in eight-seater vehicles. The draft notification states that companies will have to compulsorily increase the number of airbags in 8-seater cars to six to ensure the safety of occupants of vehicles. It has been said in the notification that this includes all the cost and variants of the 8-seater vehicle.
The final approval of this notification will mean that car companies will now have to provide two side airbags and two tube airbags in the rear seat apart from the driver and front seat. In order to reduce the impact of a side-to-side collision with a face-to-face collision. Let us inform that in July 2019, the government had made it mandatory to provide airbags for the driver’s seat and in January 2022 for the front seat with the driver.
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impact on auto stock
The Nifty Auto index opened with a gain of 2 per cent on Monday. Shares of companies making four-wheeler vehicles saw a particularly strong rise. Tata Motors rose 3 per cent to Rs 524 while Mahindra & Mahindra saw a jump of 1.5 per cent. Maruti Suzuki also rose 3.5 percent to Rs 8,368.
At the time of writing the news, Tata Motors was trading at Rs 524 with a gain of 2.8 per cent. Mahindra & Mahindra’s shares were trading at Rs 887 with a gain of more than half a per cent and Maruti Suzuki was trading at Rs 8,297 with a gain of 2.5 per cent.
Impact on airbag makers
Airbags are an auto ancillary product. Two companies making it are listed on the Indian stock exchange – Bosch and Rane Madras Ltd.
Rane Madras manufactures airbag and seatbelt assemblies along with other auto components. It supplies its products to companies like Mahindra & Mahindra, Ford India, Renault Nissan, Maruti Suzuki among others. Its shares rose over 10 per cent to hit a high of Rs 452 on Monday. At the time of writing, Rane’s shares were trading at Rs 440, up over 8 per cent.
Shares of Bosch Ltd, one of the leading airbag makers in India, jumped over 2.5 per cent to hit an intraday high of Rs 17,929 on Monday. At the time of writing, the stock was trading 0.8 per cent higher at Rs 17,645.
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