Final Recall

Four years after the Indian automotive industry initiated a voluntary recall code on vehicles, the government has finally woken up to the threat from manufacturing defects. Now, a comprehensive recall policy is in the works to deal with errant automobile companies that do not recall vehicles despite having clear evidence of technical defects. The new proposals also talk about setting up of a nodal agency to monitor the recalls process, audit records to detect lapses, and even penalise auto manufacturers for lapses. The draft rules, however, do not specify details of penal actions against errant companies. Come October, the policy is expected to come into effect.

In 2012, the Society of Indian Automo-bile Manufacturers (Siam) had adopted a voluntary code on recalls. Rising customer awareness over global recalls - the past four years witnessed over 2.5 million car recalls in India, and a whopping 60 million globally - prompted the government to chart an all-encompassing policy to look at a broad framework on safety and technical failures. Experts say with a draft notification in place, they are geared up to meet the challenges with effective implementation. "There weren't any technical facilities to evaluate vehicles against any alleged safety defect. The only capability was for the 'homologation certification' that made vehicles road-worthy in conformity to the motoring regulations. Now the Road Transport and Safety Bill 2015 will give enough teeth to deal with safety issues. Also, the National Automotive Board will act as a nodal agency and oversee technical facilities coming up in five locations under the National Automotive Testing and R&D Infrastructure Project to oversee and implement a comprehensive recalls process," a senior government official said. Companies are also planning to move away from the voluntary bait, and are tuning up their supplier and vendor base to improve quality of components, which, in turn, will translate into better cars with zero defects. This will minimise recalls that attract huge negative publicity for automobile companies.

Adopting the best practices along the lines of the National Highway Traffic Safety Administration of the US, consumers will also be empowered under the policy. They will be able to confirm recalls directly through a vehicle identification number on the company's websites, and access the recall databases of major vehicle manufacturers directly. "It would allow consumer participation and will mutually benefit all, helping brands build quality standards," says Rakesh Srivastava, Senior Vice-President, Sales and Marketing, Hyundai Motor India. The company had the lowest recalls among all automakers in India.

As more people get killed every year in road accidents, one hopes the new policy will help curb such incidents.