New Delhi: There is trouble in store for automobile companies that deliberately opt to refrain from recalling vehicles despite clear evidence of safety defects. Starting October 1, companies may face penalties as the government looks to appoint nodal agencies for investigation into safety issues as part of the government’s plans to introduce stringent rules as part of the vehicle recall policy in the works.
A draft of the proposed amendments has been prepared by the government which states that nodal agencies shall monitor the recall process and audit the records. These will be part of the wide-reaching Road Transport and Safety Bill which is likely to be introduced in the coming session of Parliament.
Unlike Europe, Japan and the US, India doesn’t have any mandatory vehicle recall policy. Till now the local automakers followed a voluntary code of recall adopted by the industry in July 2012. Since then almost 2 million vehicles were recalled due to issues like fix seat belt, air bags and problems with brake systems.
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According to the draft, manufacturers will give at least four months for customers to take their vehicles for repair. The defects may include malfunction of steering components, brake system, fuel system, wheels or seat belt, seats and the head restraint mechanism. Also a nodal agency will be created, appointed or designated by the Centre. This agency will monitor customer feedback or complaints.
The proposals have the backing of Prime Minister Narendra Modi who has told ministers to draft rules to cut down on the implementation time.
Also Highways Minister Nitin Gadkari last month had said more people are getting killed every year in road accidents than in wars, terror attacks or epidemics. To stop these accidents the government should amend the Road Transport and Safety Bill, which is being worked upon.
In a report by ET, KK Gandhi, executive-director at the Society of Indian Automobile Manufacturers, has said that said the industry body is in the process of examining the details of the draft that has been prepared. Also Maruti Suzuki wants to welcome the move.
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