Money9 Edit | Vehicle recall policy: Shot in the arm for consumers

The new notification on vehicle recall policy is expected to bring about a major shift in the way vehicle manufacturers deal with consumer complaints.

With fines ranging from Rs 10 lakh to Rs 1 crore, consumers can now expect some speedy succour for being sold a defective product and being taken for a ride, literally, by manufacturers.

Earlier left to the discretion of manufacturers, the move adds some much-needed clarity on rights and obligations of buyers and sellers.

The notification states that “defect” means a fault in any vehicle or component or software that poses or is likely to pose undue risk to road safety or environment, and that exists in a group of vehicles of the same design or manufacture, or items of equipment of the same type and manufacture, and which originated at design, manufacturing or manufacturer’s assembly stage.

To ensure the complaints don’t suffer from red-tapism or are of frivolous nature, a designated agency will probe the complaints before ordering mandatory recall.

With a rising number of accidents and no mandatory vehicle recall policy, the step will help assuage the concerns of consumers.

India has witnessed a flurry of car recalls in the past two years and this will go a long way in ensuring adherence to quality parameters.

Almost all top manufacturers in the country have been forced to recall cars and in 2020, the number of recalled vehicles stood at over 3,30,000.

Car manufacturers need to keep in mind that there is a lot of emotion attached to the car buying experience and they need to ensure that is not marred by a defective product.

Consumers should also need to use the portal in the best possible manner without resorting to cheap gimmicks.

The new framework guarantees consumer satisfaction and also ensures companies are held accountable for manufacturing lapses.