Automobile analysts feel that the Union government’s role in framing new policy/regulations on recall incidents is likely to be minimal and that it is up to the OEMs to ensure quality in order to maintain brand equity in India.
Indian Foundation of Transport Research and Training (IFTRT) convenor SP Singh said, “Formation of committee(s) is not a solution to the problem but it may be a clever ploy to deflect the issue to safeguard the present onslaught against culprits. The termination of some employees by GM India on this Tavera fiasco is not going to clean anything up. There is a yawning gap between practice and preaching in organisations involved in the present case.”
The Union government must set up a National Road Safety and Traffic Management Board in which the auto recall mechanism and related penal actions should be prescribed as the National Automotive Board formation has failed to do its well-publicised task on auto recall, he said.
Speaking to FE, Surjit Arora of Prabhudas Lilladher, said, “In this case, it is negligence on the part of the company and its officials. It is up to OEMs to be more vigilant in terms of safety standards.”
Yaresh Kothari of Angel Broking said that despite quality checks and audits, some defects were bound to happen. “Except in one or two cases — like the one involving Nano and Daewoo’s Cielo (fire accidents), there have never been any major complaints from customers in India except for replacement of minor parts. It is for OEMs to take a serious note of this issue,” he said.
“The government’s policy, if any in future, will ensure those agencies inspecting and certifying vehicles strictly adhere to rules and regulations and if needed punish them stringently if found to be guilty. Micro managing things at the manufacturing level should not be the government’s intention,” Daljeet Kohli of IndiaNivesh Securities added.