Automakers risk fines if they don’t flag defects

Automakers may face fines of up to ₹1 crore from April 1 for defects in vehicles they fail to voluntarily flag.

As per the mandatory recall norms notified by the Centre, a recall of more than six lakh two-wheelers, one lakh-plus four-wheelers and more than three lakh three-wheelers and quadricycles would attract a penalty of up to ₹1 crore. For recalling up to 6,000 two-wheelers, a manufacturer would have to pay up to ₹10 lakh.

The move signals a shift from the prevailing voluntary vehicle-recall regime.

Recall trigger

The government has set the percentage of complaints for different vehicle categories, which would trigger a recall, in the Central Motor Vehicles (Fifth Amendment) Rules, 2021.

For two-wheelers, with annual sales of up to 3,000 units, the government would order mandatory recall if 20% of vehicle owners report an identical problem. For those with up to 6,000 units in yearly sales, there would be a recall if the complaints equal 11% to 30% of total sales.

The threshold for passenger buses and trucks is 3% of annual sales.

The policy requires auto firms to recall vehicles up to seven years from the date of manufacture, said FADA president Vinkesh Gulati. This would benefit consumers as it exceeds the warranty period offered for vehicle parts in situations where there is no voluntary recall.