Latest Car News in India

Tuesday, June 21, 2016

By Manoj Kumawat

Auto companies to face penalty for not recalling vehicles

If new Road Transport and Safety Bill 2015 succeed in getting approval from Parliament during its upcoming session then automobile companies might face penalty from government for not recalling their vehicles despite of knowing safety issues in them. According to reports the new rule related with this is expected to be implemented from October 1, 2016. With this government is also speculating to appoint is own nodal agency which will be free to initiate its personal investigation on safety matters and can recommend government to direct particular company for recalling its vehicles from market.
The thought regarding framing such rules came into action after note from Prime Minister’s Office.  At present there is no such mandatory policy determined for automobile companies to recall their vehicles having any safety issue. The makers in Indian car market however followed a voluntary code for recalling their vehicle determined by Industry since July 2012. But industry experts and car owners how felt the need for introducing some act which compels car makers to recall their vehicles in case of any safety or other issue which could result in loss of life and money. 
According to reports the proposed nodal agency will keep watch on recalling process of vehicles and even check the records of auto manufacturers. The rule will also facilitate government to ask auto manufacturers to recall specific number of vehicles after receiving complain from significant number of consumers. Commenting on this proposal Mr. K.K. Gandhi, Executive Director, Society of Indian Automobile Manufacturers, (SIAM) said,” Since we have a voluntary policy in place already, October deadline should not pose much of a problem. But we have to study the fine-print first."

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