SIAM moots voluntary vehicle recall policy

New Delhi, July 2: Automobile industry body Society of Indian Automobile Manufacturers (SIAM) on Monday announced a voluntary vehicle recall policy, which recommended the government to take action if any of its members failed to announce recall despite “clear evidence”.

SIAM, however, said it would assess the need for a mandatory policy if the government decides to frame one, although it would not oppose such a move.

Under the policy, which is applicable for all manufacturers, from two-wheelers to commercial vehicles, if a company is of the opinion that there is a manufacturing defect that compromises safety of vehicles, it will voluntarily rectify the problem free of cost.

Only vehicles within seven years of manufacture would be covered under the safety recall and companies are required to post information regarding recall on their websites.

SIAM has left it to individual members to decide on the minimum number of vehicles affected to constitute a recall and also whether to announce such an exercise or not.

SIAM president S. Sandilya, however, said the Automaker Maruti Suzuki Hyundai Motor Skoda Auto General Motors Ford India Honda Volkswagen

TWO-WHEELERS Hero MotoCorp 5,34,091 5,12,244 HMSI 2,26,864 1,48,937 Bajaj Auto 3,18,377 3,22,827

Even after its split with Hero Motocorp, Honda’s sales grew by 52.32 per cent, thus registering highest growth in June 2012 policy has recommended government intervention in case of violation.

“In case a manufacturer fails to announce a recall where clear evidence is available as per recall definition and guidelines, then the government of India/ministry may issue appropriate directions to the vehicle manufacturers for such violation,” the policy said.

Asked why no punishment has been suggested in the policy, Mr Sandilya said, “Penalties should be considered only when a Difference 19.3 0.15 88.62 -10.65 -10.91 -22.81 -10.53 4.26 52.32 -1.38 company knowingly doesn’t recall despite safety issues. It should be done only in case of non-compliance.”

As such, companies suffer in terms of brand equity when they don’t take up such step he added.

The body has also recommended the government to strengthen registration of vehicle in India so that correct information of vehicle owners and as well of the primary and secondary owners, could be established to improve recall penetration. — PTI