Apparently the recalls this year were higher by 30 percent compared to 2018 and four times higher when compared with 2017.
Until a few months ago, automakers followed a voluntary recall policy as it was not mandated by the central government. Some automakers prefer not calling the recall exercise as a recall due to negative connotations attached to the definition.
But, with the adoption of the new Motor Vehicle Act that was brought into force from September 1, it has become difficult for automotive companies to avoid making an announcement of recalls as the Centre will keep a record of it.
“Where a manufacturer notices a defect in a motor vehicle manufactured by him, he shall inform the central government of the defect and initiate recall proceedings and in such case, the manufacturer shall not be liable to pay a fine,” states the Act.
Until a few months ago, automakers followed a voluntary recall policy as it was not mandated by the central government. Some automakers prefer not calling the recall exercise as a recall due to negative connotations attached to the definition.
But, with the adoption of the new Motor Vehicle Act that was brought into force from September 1, it has become difficult for automotive companies to avoid making an announcement of recalls as the Centre will keep a record of it.
“Where a manufacturer notices a defect in a motor vehicle manufactured by him, he shall inform the central government of the defect and initiate recall proceedings and in such case, the manufacturer shall not be liable to pay a fine,” states the Act.
