Presentation at:

8th SIAM-JAMA Meeting Roundtable discussion on Norms and Regulation for Automobiles

November 21st, 2013 Tokyo, Japan

N.S. Talib

Division Head (NMD)

Honda Cars India Ltd.

Voluntary Code on Indian Vehicle Recall 2012

Voluntary Recalls

S.No. Manufacturer Model Part Month / Year Numbers

1 Swift & Ritz

Diesel Engine parts 1-Apr-2011 13,157

2 City-09 Valve spring 1-Feb-2011 57,853

3 City ZX Master Switch 1-Sep-2011 72,115

4 Etios & Liva Inlet pipe to fuel tank Dec-11 41,000 +

5 Nano Cluster Meter 1-Feb-2010 70,000 +

6 Nano Starter Motor 1-Feb-2010 1,40,000 +

7 Nano Wiring 1-Feb-2010 Unknown

8 A- Star Fuel Pump ring 1-Feb-2010 1,00,000 +

Recall’s in 2010-2011

Government Reaction Vehicle Recall & Recycling policy to be framed under leadership of

National Automotive Board (NAB)

In this perspective Vehicle Recall policy was discussed at National & International Regulation

Council at Mumbai on October 20th , 2011

SIAM Initiative Service Heads Group requested to form the Code of Recall

Approach – Set Up Of Core Committee

CHAIRPERSON: Mr. PANKAJ NARULA CO-CHAIRPERSON: Mr. R. MAKHIJA CORE COMMITTEE MEMBERS:

Set up on November 24th , 2011

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Initiation Of Code For Voluntary Recall

World Scenario Indian Scenario

ADR(DIRD)

(1989)

MLIT (1969)

BAuA

VOSA (1979)

RAPEX NHTSA (1966)

Vehicle Recall (Voluntary /Regulatory) based

on “Safety considerations”

Recalls monitored by I&M Regulatory

bodies/ Agencies having Technical Experts

Recall at OEM‟s prerogative, “No statutory

framework” for safety issues exists

Emission related issues regulated through COP system

“NO I&M Programme/ Agency”

Absence of Monitoring Agency

Proactive step taken by Indian Auto Industry through SIAM initiative

Australia Japan Germany

UK EU USA

Proactive measures adopted by Indian Automobile Industry in the past Emission Warranty – July, 2001

Fuel Economy Consumer Information at point of sale – Jan 2009

Comparative Fuel consumption – July 2010

Salient Features

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Voluntary declaration of “Recall” Passenger Cars, 2&3-Wheelers, Commercial Vehicles

Applicability Upto Seven years from date of sale Consideration Manufacturing/Design defect related to Safety features Discretion Manufacturer based on nature of failure

Voluntary “Recall” code applicable from July 1, 2012

Safety defect Failures that pose potential threat to safety of the occupant

Origination Design, Manufacturing or Assembly stage Applicability Group of vehicles/ Components of same design or Lot Warning Little or No onboard warning

Safety Defects

Malfunction in braking system Malfunction in Fuel system

Unintended acceleration or Fuel leakage Significant loss of Braking function

Malfunction in Steering system

Complete Loss of Vehicle control

Cracked or Broken wheels

Loss of Vehicle control

Malfunction of Seat/Seat back/Headrest

Immediate Danger to Occupant

Wiring Problems

Loss of Lighting or Fire Threat

Exceptions Any defect which may occur due to everyday wear & tear or lack of proper

maintenance, servicing of vehicles/ any negligence on the part of the user/driver(s).

Recall Process Flow

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Safety Defect observed in the Market by Vehicle Manufacturer/ Importer (OEM) (Vehicle shall be covered under safety recall for a period of 7 years)

OEM will do the Risk Analysis & assessment of defect, based on vehicle owners feedback to decide whether Recall is necessary or not

• OEM will inform to Govt. of India/ Ministry in the relevant format

• Notification to Vehicle owners by OEM/ Dealers indicating the period of Recall.

• Information to be posted on OEM website indicating the vehicle models/ variants and further course of action.

If Recall not required

No Action

required by OEM

OEM shall monitor the Recall response rate with Govt. of India/ Ministry on a periodical basis until the Recall is closed or as requested by Govt. of India

If Recall necessary

All OEM‟s are practicing recall code “Voluntarily” since July 2012

Once a Recall is announced the vehicle manufacturer will not be held liable for any mishaps, if the vehicle owner continues to use the vehicle & does not bring the vehicle for rectification contrary to the vehicle manufacturer’s instructions

Current Status on Policy

Applicability

Vehicle would be INELIGIBLE FOR „RECALL‟ action for reported ‘safety defects’:

• Overloading

• External hits/body damage due to accidents/abuse/poor driving/poor

maintenance/unauthorized repairs

• Unauthorized fitment or alterations

• Any other external reason

• Use of vehicle for purpose other than what it was designed for

• Ownership cases where vehicle traceability is not available

• Parts/accessories which are not approved by the manufacturer & or fitted

outside the manufacturer’s network

Vehicle Abuse & usage of non-genuine parts ineligible for Recall

Penalties

Penalties should not be enforced in case the OEM has complied with all Recall requirements

MV Act already has sufficient provisions imposing penalty for various issues hence there is no necessity to have a separate penalty Clause as: Sec 109 (3) r/w S.182-A of the MV Act prescribes penalty on manufacturer using

sub-standard articles or process. Sec 190 (2) of the MV Act prescribes penalty on any person allowing the motor

vehicle to be driven which violates the standards prescribed in relation to road safety, control of noise and air-pollution.

Sec 177 of the MV Act also contains general provision for contravention of any provision of the Act.

Moreover the same may amount to double jeopardy (imposing penalty twice on a

similar issue).

After Establishing the Vehicle Fitness Certification (I&M System ) Penalty Clause needs to be considered

SIAM Stance :

Separate Penalty clause not necessary

The following situations prevail in India: No centralized data base for vehicle tracking

No I&M mechanism and related performance standards exists for private vehicles in field.

No regulations for after market parts leading to rampant use of spurious or low quality spare parts.

Adulteration of fuels and lubricants.

Overloading

Lack of enforcement of existing regulations on the road

All these parameters make identification of a failure, due to genuine manufacturing defect, very difficult.

Way Forward

SIAM proposes to continue with Voluntary code for Recall till I&M infrastructure is

set up by the Government

Thanks

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