NEW DELHI: Vehicle
buyers in India seeking a guarantee for their purchase would soon get
one as the government is in the final phase of framing a 'mandatory recall policy' for vehicles with manufacturing defects or technical flaws.
The move follows India's largest ever recall of 1.14 lakh Tavera multi-purpose vehicles by GM, recently. Over 3 lakh cars (over 10% of total vehicles manufactured in India a year) were recalled in the country for various technical defaults in the past one year by companies including Ford, Honda, Renault and Nissan. This is almost five times the number of vehicles recalled in developed markets.
Pune-based testing agency Automotive Research Association of India (ARAI) will draft the provisions for recall of vehicles on various safety and technical parameters.
"There has been a need to broaden the perspective of recall to bring in best global practices ... followed in the US, Europe or Japan.
We have asked ARAI to develop a standard recall policy for all vehicles that would be framed under the relevant motor vehicles rules and enforced," said Ambuj Sharma, additional secretary in the ministry of heavy industries.
The serious flaw in emission norms, which forced GM to call back over 1 lakh Tavera MPVs, went unnoticed for over eight years. The vehicles were made in Indian factories. This incident came as wake-up call for the government.
"There is need for a mechanism to plug loopholes in the system. A clear policy would define the scope and give more teeth to the government agencies for stricter compliance in automotive manufacturing," Sharma said.
Analysts tracking the industry say the time has come to frame broader
guidelines on the sensitive issue of recall. "It would help protect
consumer interest. India is now a mature market and if there is a defect
caused by slack design or poor manufacturing, then the manufacturer
should be held accountable for that," said Rakesh Batra, national leader of the automotive sector at EY India, a global consultancy.
The recall policy under preparation will have stringent provisions including financial penalty and will cover all registered vehicles like passenger cars, two-wheelers and commercial vehicles.
The move follows India's largest ever recall of 1.14 lakh Tavera multi-purpose vehicles by GM, recently. Over 3 lakh cars (over 10% of total vehicles manufactured in India a year) were recalled in the country for various technical defaults in the past one year by companies including Ford, Honda, Renault and Nissan. This is almost five times the number of vehicles recalled in developed markets.
Pune-based testing agency Automotive Research Association of India (ARAI) will draft the provisions for recall of vehicles on various safety and technical parameters.
"There has been a need to broaden the perspective of recall to bring in best global practices ... followed in the US, Europe or Japan.
We have asked ARAI to develop a standard recall policy for all vehicles that would be framed under the relevant motor vehicles rules and enforced," said Ambuj Sharma, additional secretary in the ministry of heavy industries.
The serious flaw in emission norms, which forced GM to call back over 1 lakh Tavera MPVs, went unnoticed for over eight years. The vehicles were made in Indian factories. This incident came as wake-up call for the government.
"There is need for a mechanism to plug loopholes in the system. A clear policy would define the scope and give more teeth to the government agencies for stricter compliance in automotive manufacturing," Sharma said.
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The recall policy under preparation will have stringent provisions including financial penalty and will cover all registered vehicles like passenger cars, two-wheelers and commercial vehicles.
ABDUL WAHEED
PGDM 3rd SEM.
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