SIAM code on vehicle recall comes into force

In a significant development to ensure safety and customer satisfaction, SIAM member-companies have implemented the “Voluntary Code on Vehicle Recall” with effect from July 1.

Last year the Indian automobile industry sold about 17.3 million vehicles which included about 2.6 million passenger cars, about 13.4 million two-wheelers and 1.3 million commercial vehicles and three-wheelers. The volume has grown significantly over the years from a modest number of about 5.3 million in 2001.

This initiative is one more step taken by the industry to reinforce its commitment to the society to ensure vehicle safety for the occupants as well as to others.

For the Indian auto industry, which has already taken several steps to make vehicles safer, this voluntary recall code is a reinforcement of its commitment towards consumers and the society at large by ensuring that vehicles continue performing effectively during operation.

The recall code is a uniform framework for recalling vehicles by manufacturers. The code is applicable to registered passenger cars, two-wheelers and commercial vehicles. For CBU imports by member-companies or independent importers, the concerned importers should bear the responsibility of enforcement of the code.

The voluntary code will address potential issues related to the safety due to manufacturing defects and the remedial action taken in this regard. The vehicle would be covered under safety recall for a period of seven years.

The code covers various topics like notification to vehicle owners, action(s) for recall, publication of information and listing down what should the vehicle owner do in case of missing recall.

The decision on recall takes into account the degree of seriousness or severity of occurrence of any possible hazard involved.

The code ensures that the recall information will also be posted on the company website and the communication will be received by vehicle owners. The reported vehicle will be rectified by the manufacturer through its dealers at no cost to the customer.

Further, in case a manufacturer fails to announce recall where “clear evidence” is available as per the recall definition and the above guidelines, then the Government/Ministry may issue appropriate directions to vehicle manufacturers for such violation.