As the Government begins talks for a national policy on mandatory vehicle recalls, the Society of Indian Automobile Manufacturers (SIAM) has already taken guard to stave off any regulation making recalls compulsory.

The industry body, which pre-empted the Government’s move by launching its own ‘voluntary’ recall code for safety-related “potential” hazards on Monday, has said that no enforcement is necessary in the code. It feels that companies are likely to announce vehicle recalls by themselves to safeguard their brand reputation.

“We will support it if there is a need to mandate it, but a need has to be felt,” said Mr S. Sandilya, President, SIAM, when asked about SIAM’s position on the Government’s proposal.

“We feel that a voluntary code is enough. If a company decides voluntarily not to recall, they will do so at their own peril,” he added.

Discussions on a mandatory code have begun at the Ministry of Road Transport & Highways with SIAM, with the Ministry of Heavy Industries, nodal ministry for the auto industry, to join in this month itself. Draft guidelines are expected by year end.

This policy would look to define the recall mechanism by stipulating the process a manufacturer needs to follow after defects are detected in a certain production batch/model. Manufacturers would also be mandated to inform the Government and the media, with a penalty clause attached for errant firms, sources said.

redressal mechanism

In contrast, SIAM’s new code does not have a redressal mechanism for dissatisfied consumers and places the onus of deciding what to classify as a recall and the number of units involved on the automaker itself. Additionally, there is no punitive or enforcement measures. Examples of what constitutes a recall include malfunction of steering components that can lead to loss of control, defects in the braking system, or issues with the fuel/wiring system.

SIAM’s code is applicable on all passenger vehicle, two-wheeler and commercial vehicle makers, apart from CBU imports, from July 1. Most developed auto markets such as the US and Western European countries such as Germany and Britain already have such a policy to protect consumer interest.

Recall, a dirty word

In the past, several vehicle recalls have happened in the domestic market, but companies usually abstain from calling it the same. Most times, individual customers are informed directly through an SMS, but a lack of declaration puts other customers at risk – for instance, those who may have changed their phone number.

Though under SIAM’s code, the recall information would be sent to the Government, lack of a media announcement would risk buyers of second-hand cars being uninformed of such a move.

The largest-ever recall in India probably was for the one lakh plus units of the A-Star in February 2010, the only competition coming again from Tata which asked 1.40 lakh Nano owners last year to bring back their cars for a change of the starter motor – but did not call it a ‘recall’.

Tata Motors' had also offered a free fix on 70,000 plus units of the Nano compact in November 2010, following incidents of fire.

In April last year, Maruti Suzuki recalled 13,157 Swift and Ritz diesel models to inspect, fix engine defects, preceded by Honda Siel's February 2011 recall of 57,853 units of the City. In September last year, Honda again recalled 72,115 units of the City to replace defective power window switches.

Toyota Kirloskar had recently announced recall of 41,000 units of its Etios and Liva models to replace a faulty inlet pipe to the fuel tank.

> roudra.b@thehindu.co.in

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