No mandatory recall policy for car manufacturers

The fourth and latest draft of Road Transport and Safety Bill 2015 which proposed mandatory recall has been struck down by the Government.

A written reply in Lok Sabha, stated that the government was against introducing a law stated in Road Transport and Safety Bill 2015 Draft. This law stated that vehicle manufacturers will have to ensure compulsory vehicle recall in the event of 100 or more persons citing grievances with regard to defects in any vehicle. The bill had also proposed penalties to the tune of INR 50,000 for manufacturing faulty vehicles and a fine of INR 1 lakh for failure to recall them.

defective car india recall policy

Manufacturing defect or not, Indian Govt. says car manufacturers have no compulsion to recall.

But, in a recent turns of events, which acts against the safety of consumers, the Minister of State for Heavy Industries, G M Siddheshwara indicated that no order was issued that vehicle manufacturers will have to compulsorily recall vehicles with defects. He said, though voluntary recalls can be carried out. Auto manufacturers will have to decide if there is any manufacturing defect that would affect safety of the vehicle. In this case only voluntary recalls can be carried out which will however be free of cost to customers. The same policy will be applicable to trucks, buses, scooters, tractors etc.

As on date, automakers in India follow a voluntary recall policy introduced by Society of Indian Automobile Manufacturers (SIAM) in July 2012. Since July 2012, a total of 7 lakh vehicles have been recalled which not only included four but also some two wheelers and commercial vehicles. In the past year, auto majors such as Maruti Suzuki, M&M and Ford Motors have all recalled thousands of vehicles to rectify problems ranging from faulty door latches to airbags.