Vehicle regulations are requirements that automobiles must satisfy in order to be approved for sale or use in a particular country or region. They are usually mandated by legislation, and administered by a government body. The regulations concern aspects such as lighting, controls, crashworthiness, environment protection and theft protection, and might include safety belts or automated features.
Government regulation in the automotive industry directly affects the way cars look, how their components are designed, the safety features that are included, and the overall performance of any given vehicle. As a result, these regulations also have a significant effect on the automotive business by generally increasing production costs while also placing limitations on how cars are sold and marketed. Automotive regulations are designed to benefit the consumer and protect the environment, and automakers can face stiff fines and other penalties if they are not followed.
— investopedia, [1]