New Regulations To Increase Commercial Vehicle Prices By 10-12%: Icra

The road logistics industry is bracing itself for a significant cost increase of 10 to 12 per cent as multiple regulatory changes are poised to reshape the landscape, the rating agency Icra said in a report.

The research highlighted that while these regulations may pose a financial burden on manufacturers, they come with the promise of substantial benefits in terms of improved vehicle safety and driver comfort.

“Manufacturers are obliged to adhere to a range of mandatory norms, designed with a focus on drivers' comfort and the prevention of road accidents. One of the key regulations set to come into effect is the requirement for air-conditioned (AC) cabins in trucks, mandated from January 1, 2025,” it added.

Additionally, a suite of advanced safety features, including blind spot information systems, advanced emergency braking systems, rollover protection systems, and driver alert systems, will be incorporated to enhance road safety.

Furthermore, mandatory features such as fire detection, alarms, and suppression systems are being introduced for specific segments, such as intercity buses and school buses, with an effective date of 1 October 2023.

The report also stated that while the implementation of these regulations will undoubtedly increase production costs, the anticipated reduction in road accidents and the heightened safety of both vehicles and drivers promise to outweigh the financial burden. 

Moreover, aligning vehicle manufacturing standards with international benchmarks can potentially boost export figures and attract foreign investments.

Icra research suggested that the trucking industry's pursuit of driver safety and sustainability, though cost-intensive, is set to revolutionise the sector, ensuring safer roads and more comfortable journeys while paving the way for increased global competitiveness and investment opportunities.