Nissan - Global NCAP Feud Over Cars For Emerging Markets

There have been several reactions since NDTV first broke the story on the Global NCAP crash tests for Indian made cars in February. Most reactions from our viewers and readers have been emotional ones - as can be expected. But reactions from the automobile industry, who we were really addressing in a sense have been mixed - ranging from candid introspection to indifference.

Now, it seems, the story has resonated with the world media at the ongoing Geneva Motor Show. Andy Palmer, the head of Nissan's global product planning has called the tests absurd. Mr. Palmer was reacting to a question with specific reference to the Global NCAP Safer Cars for India programme, which I have been very closely involved with. Mr. Palmer was speaking with reference also to Nissan's huge global relaunch of its Datsun brand for emerging markets - where India is in fact the lead market. Datsun's first car, the Go will launch in India in just a few days, and we have already reviewed it as well.

Andy Palmer said, "I think the people who criticise these cars for not meeting US or European crash standards are living in a dream world. We are talking about cars built to transport people who would otherwise be four or five-up on a motorcycle. These people today can't afford more, and if we fit safety systems we will drive the prices up and they'll choose the motorbike again. A car with a body and individual seats is much safer than a bike."

While I agree with Mr. Palmer there, the same logic was applied when Ratan Tata asked his engineers to create, what became, the Nano. And as sales have proved, the premise that people are happy with a basic car on four wheels, with doors, windows and a roof - is not true. People instead want products that are apsirational, and for a growing number that aspiration is linked to safety as well.

Why must car makers - and I don't want to single out Nissan here - only do what is seen as adequate, or within the confines of the local regulations? The arguments to answer that question are many - carmakers are running a business, and so profitability is naturally paramount. But to that I say, where the government won't step in and mandate safety features, why not let the consumer decide. You should have the power to choose if you want safety for you or your loved ones.

Offer safety features as optional if not standard, and simply ensure that a car's basic shell has acceptable levels of integrity. Acceptable- not as defined by Euro NCAP, but by a basic UN Safety standard at least. UN's Regulation 94 frontal impact crash test only requires a single driver side airbag, and reasonable body strength - which most global car platforms already possess.

Global NCAP says, "To meet the UN's minimum standards, only involves relatively small additional costs of around $100 per unit."

In fact Global NCAP Chairman Max Mosley has written an open letter to Andy Palmer responding to his stance, in which he says, "It is disappointing that Nissan is not anticipating either the trends established through the UN Decade for Safety, or the growing safety awareness of consumers. Some of your leading competitors have a rather different planning approach, acting on their own initiative to make airbags standard. Their customers will be less likely to suffer the nightmare consequences of a crash."

While this may end up being a bit of a ping-pong game between Andy Palmer and Global NCAP, what is relevant to me, and indeed our market, is how the approach carmakers have to safety evolves, for the products sold in India. Gradually, we must move to adopting standards, that don't necessarily apply to mature markets like Western Europe, but certainly those being implemented in Latin America for instance. The Datsun Go will launch in India in a few days, and I am encouraged that from initially telling us that there would be no model with airbags, now the company has already shared with us at the first drive of the car, that such a variant or option is already under consideration.

Nissan said, "The safety of our customers and potential customers is a priority. We sell vehicles in more than 170 markets around the world. In all of those markets, our vehicles comply with relevant safety standards. Regulations vary from market to market, and from region to region. Nissan ensures that all models meet those local regulations, combining the best engineering, reliability and value for consumers, and delivering practical and reliable transportation."

Also of note is the reaction we got from other carmakers who are now considering a strategy specific to safety with context to cars for our market. VW relaunched the Polo with airbags standard across variants in February, while Mahindra boss Pawan Goenka told NDTV, that future M&M products will offer safety as an option on every grade or variant, across the board.

Small steps? Sure! But steps in the right direction definitely. I shall end this piece with my usual sign off - please drive safe and wear your seatbelts.