Government Of India To Fine Manufacturers Less For Faulty Vehicles

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Nowadays more and more faults are being spotted in new vehicles. Manufacturers later announce a recall of their vehicle to rectify the issue, however, this means the customers are at risk.

Manufacturers issue to recalls to provide peace of mind to owners of their vehicles. In most cases people appreciate this gesture as companies are owning up and are willing to rectify the issue.

Mostly recalls ruin brand value and image of the manufacturer. Customers refrain themselves from buying vehicles that have a reputation of several recalls and faulty part changes.

faulty vehicle fine

Previously there was no recall policy in India and manufacturers could get away with it easily. Now SIAM is in charge and they have made it mandatory for manufacturers to reveal any defect or faulty issue.

Previously fines for not notifying faulty or deceptive components was charged with a fine of INR 5,00,000 by SIAM. The Indian Government has stepped in and has decided to reduce these fines.

Now the Indian Government has decided to fine manufacturers only INR 1,00,000 if they do order recall voluntarily. Manufacturers will be fined INR 50,000 incase of any manufacturing defect or faulty component is found on the vehicle.

Do let us know in the comments is lowering of fine amounts on manufactures a good decision? We believe manufacturers should readily recall vehicles as faulty components could endanger owner and sometimes even others on road.

Read more on: #auto news #government
Story first published: Friday, April 10, 2015, 15:28 [IST]
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