Transport Ministry Finalises New Recall Formula For Faulty Vehicles
Highlights
- Government has approved new recall procedure for vehicles in India
- Recall provision has been made a part of the amended Motor Vehicle Act
- Vehicles that are less than seven years old will be applicable for recall
The Ministry of Road Transport and Highways (MoRTH) has permitted a new formula for initiating recall of vehicles of a particular model. According to a report from ETAuto, the government will be triggering the recall only if there are complaints of identical defects. Notably, such triggered recall will be linked to the percentage of complaints received from consumers and the annual sale volume of that specific model. Vehicles with age of less than seven years will be applicable for recall, which will be determined from the date of manufacturing, import or retro-fitment.
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For mass selling products, the percentage of complaints to trigger the recall will be lesser considering the high volume of sales. The new provision for mandatory and voluntary vehicle recall has been made a part of the amended Motor Vehicle Act. The ETAuto report has mentioned that Transport Minister Nitin Gadkari has approved the decision for triggering recall of vehicles, which will be notified very soon. The government had finalised the norm after discussing it in-detail with the automobile industry.
If the annual sale of a car is up to 500 units, then 100 complaints which is 20 per cent of sold units, will be sufficient for the transport ministry to start the recall process. But in the second scenario where the annual sale of cars over 500 units and less than 10,000 units, the number of complaints required have be at least 1,050. Additionally, if the annual sale of the car is beyond 10,000 units, the number of complaints need to be at least 1,250 for the transport ministry to initiate the recall process.
Similar formula is employed for two-wheelers, three-wheelers and event quadricycles. It is worth noting that there will be a uniform formula for other categories of vehicles including big passenger vehicles, buses and trucks. For this category, only 3 per cent of defect complaints against the annual sales will be enough to trigger the recall procedure.
Last Updated on September 30, 2020
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