Wednesday, March 13, 2013

M&M recalls 25,000 XUV500s


XUV500, one of the top-selling SUVs of the country, is being recalled for replacement of faulty parts on a select batch of vehicles produced between 2011 and 2012. Mahindra & Mahindra said the "preventive replacement" will cover three parts — fluid hose, front power window units and the left wiper blade cover.

Approximately 25,000 vehicles will be covered in the exercise, a top official said.

"This replacement would be free of cost for XUV500 customers, who would be individually contacted by the company," M&M said, adding that the exercise will be carried out with immediate effect.

Vehicle recalls were earlier not very prevalent in India as manufacturers feared bad publicity from the exercise, leading to a potential negative impact on sales of the model. However, with increased focus on customer safety as well as rollout of voluntary guidelines by auto industry body Society of Indian Automobile Manufacturers, companies have been making announcements on faulty parts.

In August last year, Ford India had called back over 1.2 lakh units of the Figo hatchback and Classic sedan (earlier known as Fiesta) to fix a potential problem related to the rear suspension and the steering unit that could have caused breakdown and even a fire.

And, towards the end of 2012, Toyota had called back around 8,700 units of the Camry and Corolla Altis sedans as part of a global recall to inspect faulty power window master switches (PWMS), which could be a potential fire hazard.

Industry analysts feel that India still needs to do a lot in ensuring that companies do not shy away from admitting to faulty parts when a generic problem is noticed.

Against a strict regulatory regime in many countries of the West over vehicle defects, India is yet to get a mandatory recall policy backed by the government. 
 
Md Jeeshan Ali
PGDM 2nd

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