The Centre should set up an independent high-level technical committee to do extensive Conformation of Product (CoP) tests of Volkswagen cars sold in India rather than leave the task to present testing agencies such as ARAI and iCAT, the Indian Foundation of Transport Research and Training (IFTRT) has said.
“While it may be appearing to be a prompt action by the Union government to ask vehicle testing agencies in India to look into the conformation of emission norms adherence by Volkswagen India for its cars and alerting to keep an eye on other auto makers also, but it is very difficult that testing agencies like ARAI, iCAT will suddenly be able to fix fudging emission norms by car makers to whom they have issued vehicle certification and have been carrying out mandatory annual CoP and endorsing the fairness of emission and specifications,” IFTRT said in a statement released here.
Therefore, the central government must set up an independent testing committee to carry out inspection in this case, it added.
It is important to note that while in the US car makers are allowed to make ‘self declaration’ about the vehicle’s emission norms and in case any manufacturer is found to be cheating the pollution detectors, heavy penalties are imposed and in the present case about $18 billion of penalty is expected to be imposed on Volkswagen, IFTRT said.
On the other hand, India has a system of vehicle certification under the Central Motor Vehicles Rules (CMVR), 1989, in which designated vehicle testing and certifying agencies like ARAI, iCAT carry out annual mandatory CoP and hence, the auto maker and vehicle testing agencies are accountable for vehicles adhering to the pollution standards.
‘US crisis not to hit VW’s India finance arm’
Volkswagen Financial Services’ ability to extend support to its Indian arm — Volkswagen Finance Private Limited (VWFPL) — is unlikely to get deteriorated because of the recent crisis relating to Volkswagen AG, India Ratings and Research (Ind-Ra) said on Friday. As a captive finance company of Volkswagen group in India, VWFPL is closely integrated with the parent for the planning and execution of business strategies for the Indian market.
VW Financial Services has no financing exposure to the US (to which the events mainly pertain) and its Indian operations that forms less than 1% of the global operations are unlikely to be impacted, India Ratings said in a research note.