Auto recalls double in 2011-12 as firms try to retain buyers

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Roudra Bhattacharya: New Delhi, Nov 23 2012, 01:36 IST
Vehicle recalls on account of manufacturing defects have doubled in 2011-2012 compared to 2008-2010, but does that mean cars and two-wheelers are deteriorating in terms of quality standards?

No, feels the industry. Increased consumer awareness and cut-throat competition are compelling automakers to improve quality levels by acknowledging faults with vehicles even after sales. This has led them to offer ‘free replacement’ of parts without the fear of being branded for poor quality. So far, many companies viewed the ‘recall’ tag as a dangerous word, so much so that they often played it down by calling it ‘free fix’, ‘maintenance checks’, ‘upgrades’ or ‘free service’.

In 2012, there have been five recalls — one each from Honda Motorcycle & Scooter, Toyota Kirloskar, Mitsubishi, Ford and Tata Motors. Mitsubishi, however, called it a “field repair”. In 2011, there were five as well — two from Honda Car and one each from Toyota Kirloskar, Maruti Suzuki and Tata Motors. Toyota Kirloskar also did not call it a recall though. Compared to this, over 1997-2010, there were just about eight vehicle recalls.

Deepesh Rathore, MD, IHS Automotive India, feels that the market is maturing to a point where companies are forced to acknowledge manufacturing defects before customers face problems.

“It’s a good thing when a company recognises a defect and is bold enough to offer a free fix, because brand goodwill goes a long way. Any company that hides a recall or chooses not to call it such, probably does not

... contd.

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