Component quality an area of concern for industry: RC Bhargava

Maruti Suzuki India is getting ready for a set of new models, which will fall in segments where it currently present in, as well in some where it is not. The goal is to further consolidate its numero uno position in the Indian market.

Engineers in Maruti Suzuki and Suzuki Japan have been working jointly on the new model programmes. But Maruti Suzuki's chairman R C Bhargava has raised a concern. "While we introduce new models, an area of concern, not only for Maruti Suzuki, but for the entire industry, is the need for improvement in the quality of components," says Bhargava in the company's annual report for 2014-15.

The concern is mainly over quality of components from 'small manufacturers'. As India moves a policy of voluntary recall to mandatory recall of defective vehicles, steps to address this concern need to be taken. "There have been several recalls in the industry, and most of them originate from the components supplied by small manufacturers. The government is legislating to deal with recalls, but it is perhaps even more important to review the supply chain arrangement to correct the identified weaknesses and reduce recalls," says Bhargava.

Since the introduction of the voluntary recall code in July 2012, India has seen over 1 million vehicles being recalled by manufacturers. Of them, 211,000 units are vehicles from Maruti Suzuki, making it the second highest figure in the recall list. Ford India vehicles – 316,000 of them – have seen the maximum recall in India. 

Also read: Vehicle recalls in India cross the one-million mark