VW Dieselgate – Company may recall over 3 lakh cars in India
Talking to ET NOW, Ambuj Sharma, additional secretary, Department of Heavy Industries, Government of India, has stated that the final report on VW Dieselgate by ARAI is expected to be released today (30.11.2015). Depending on the findings, VW Group India could likely initiate a recall to fix diesel cars that doesn’t comply with emission norms.
VW got into serious trouble world over after the existence of an emission norms cheat device was found in its EA189 series diesel engines. The engines fitted with cheat device is found to be emitting as per regulations while being tested on a rig but emitting much higher NOx while on the road.
Over 3 lakh cars in India belonging to VW, Audi and Skoda brands are reported to be powered by diesel engines with cheat device and if the ARAI’s report is conclusive of the wrong doing, then VW is expected initiate recall of all the affected vehicles. VW India had earlier said that the fix will be similar to what was proposed for Europe since the Indian homologation process is pretty much identical. The VW Diesegate would be expensive for the company to fix considering the sheer number of affected vehicles.
VW Group’s American subsidy has announced gift vouchers worth USD 1,000 (around around 67,000) for owners of dieselgate cars in an attempt to offset the loss of resale value they suffered and to reinstall faith in the brand. It remains to be seen if Indian customers would receive such benefits or not.
UPDATE – Volkswagen India recalls 3,23,700 cars of Volkswagen, Skoda and Audi in India that are equipped with EA 189 diesel engines.