Vehicle recalls in India cross the one-million mark

Nissan Motor India’s recall of its Sunny sedan and Micra hatchback models on June 30, 2015 is the latest in a slew of vehicle recalls by car manufacturers in India since Society of Indian Automobile Manufacturers' (SIAM) Voluntary Code on Vehicle Recall came into effect on July 2, 2012.

This recall of 12,000 vehicles to rectify faulty engine switches and airbags in certain models manufactured between June 2013 and March 2015 has taken the cumulative total of vehicles recalled in India to 1,019,698 since SIAM's code came into effect. Honda Cars India’s recall of 11,381 cars in May this year to replace faulty airbag inflators had pushed the number beyond a million or 1,000,000 units.

Some of these recalls are part of a global exercise. These recalls were made by 16 OEMs – eleven four-wheeler OEMs and five two-wheeler manufacturers.

(Click here for detailed listing of vehicle recalls in India)

In the four-wheeler space, the OEMs include mass market leader Maruti Suzuki at one end and luxury carmakers Jaguar Land Rover and Audi India at the other. Of the top 10 passenger carmakers in the country, only Tata Motors and Volkswagen India have not made any recall since the SIAM code came into effect. The biggest recall so far has been by Ford India. Its recall of the Figo and Fiesta Classic due to issues in the power steering hose system and the rear twist beam was completed in two phases, one in August 2012 and the other in September 2013, and included a cumulative 294,676 units. Jaguar Land Rover was the first luxury carmaker to have recalled vehicles after SIAM’s code came into effect. Audi India followed suit with its recall of the A4 (6,758 units) and Q7 (382 units) models in Q4 2014.

Between July 2012, which is when SIAM’s code came into effect, and June 2013, the industry saw 246,495 vehicles being recalled. In the following year, the number increased by more than 100% to 522,299. The July 2014-June 2015 count stood at 250,904 units, a reduction of more than 50% from the preceding year.

In India, there is yet to be a law by the government that makes recalls mandatory, in case of any technical snag. SIAM's voluntary recall code, however, has paved the way to a structured vehicle recall exercise in India. It also reflects Indian OEMs’ proactive efforts to address technical issues in their vehicles, as is the industry practice in the west.

In earlier interactions with Autocar Professional regarding vehicle recalls, industry leaders have voiced the importance of being completely transparent about any possible quality or technical defects. Market analysts, however, are of the opinion that while one-off recall events may be perceived positively by customers as a reflection of continued customer care from an OEM, repeated issues from the same maker are likely to shake the confidence of existing customers and prospective buyers.

SIAM’s code places the onus on the manufacturer to recall defective vehicles, with no obligation on the defaulting companies to issue a recall. Though the code is certainly a step in the right direction, a mandatory code which allows the government to direct companies to recall vehicles will certainly increase the focus on quality and give OEMs that added incentive to ensure the products going into the market are ‘First Time Right’ and also positively impact consumer and market sentiment.