Around 150,000 individuals die in road collisions in India every year, which holds the record for the most number of car crash casualties in the entire world. After a number of popular Indian cars famously flunked a crash test, the Indian government has finally stepped up its efforts to make cars safer for Indians.

Under the Bharat New Vehicle Safety Assessment program, car manufacturers will have to implement mandatory offset frontal collision and side impact tests for all new vehicles and incorporate architectural changes of existing models, such as a full body redesign or reinforcing the chassis and body cage. They will also have to pull out certain older models deemed to be unsafe.

This follows after the Tata Nano, Maruti Alto 800, Ford Figo, Hyundai i10 and Volkswagen Polo, all enjoying significant market share in India, scored zero in crash safety test conducted by the U.K.-based New Car Assessment Program (NCAP).

"All the cars currently sold may not meet the norms even after major changes are carried out," said a government official who asked not to be identified. "Especially, the older ones may have to be phased out by manufacturers as the cost is always to adapt to new norms would be prohibitive and commercially unviable."

The program also includes safety star ratings similar to that provided by NCAP. The ratings will be based on the car's safety features, such as airbag deployment, anti-lock brake system with electronic brake distribution and seatbelt reminders.

"Government is studying the crash test norms and assessment programs from all major markets like Japan, Europe and the U.S. to develop the most ideal mix for India. The detail protocol for safety star rating in India is likely to be ready by mid-2014," said the source.

Automakers have long held off adding better safety features and implementing rigorous testing because these add up to manufacturing costs and ramp up the cars' market prices. Government experts believe that adding 8% to 15% of a car's showroom price are enough to shoulder the costs of meeting the new norms.

The National Automotive Testing and R&D Infrastructure Project will roll out the program in various phases within the next couple of months. Currently, the government is participating in initial parleys with stakeholders, including car companies and testing centers, before finalizing the standards.

Auto industry expert Abdul Majeed, partner at Price Waterhouse, believes all stakeholders will benefit from stricter safety norms.

"By harmonizing India's vehicle safety standards with those abroad, government can ensure road worthiness of vehicles produced in the country. it will also help automakers to easily export locally produced cars globally, where these standards are the norm and spread the involved costs over higher volumes," he said.

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