In India, a person is killed in a road accident every four minutes – 141,000 in 2014 – yet less than a third of the 2.6 million cars sold each year have air bags in this cost-conscious market.
By 2017, crash test standards are planned to be made mandatory in India. This has created a huge opportunity for airbag-manufacturing companies, who have already started ramping up their existing production lines and are pumping in more investments into their plants, with an eye on a possible $2 billion in profits by 2020.
Overall revenues from airbag sales are expected to grow at 11 percent a year by 2020, as India is expected to sell over 5 million cars a year by then. After the crash test standards are implemented, cars without airbags will be certified with the lowest safety ratings which will force customers to directly consider the risks involved if they go for a cheaper car.