Anatomy of a recall

While recalling a car is in the best interests of the customer, car-makers cannot afford to hit the recall headlines too often

Its the season of car recalls. This month saw Maruti Suzuki recalling a little over one lakh models while Toyota Kirloskar Motor reported half that number for its Innova. And across the Atlantic, the new CEO of General Motors, Mary Barra, was grilled by Congress on deaths caused by the delayed recall of 2.5 million cars with faulty ignition switches.

Would recall qualify as the most dreaded term for carmakers in India and across the world? Does it mean that they are suddenly classified prime suspects by their buyers? Not quite, if it is a proactive step to ensure that a defect is ironed out to ensure customers comfort and safety.

In the case of India, this is also a result of the Voluntary Code on Vehicle Recall implemented by the Society of Indian Automobile Manufacturers in July 2012. Since then, over half a million recalls have taken place with Ford India accounting for over two lakh vehicles and Maruti taking second place with its latest initiative.

Of course, the most controversial during this period was GM India recalling over one lakh units of the Tavera sold over the last eight years. In the process, a whole lot of ugly truths were revealed, with the Indian Government accusing the company of deliberately fudging figures to ensure that the Tavera passed the emissions test.

It would, of course, be unfair to assume that every other recall in India is part of a larger cover-up operation. Yet, it causes ripples because people suspect there is something more than meets the eye when companies announce a recall. It takes time for customers, and understandably so, to appreciate that this is sometimes being done in their best interests.

However, too much of a good thing can be counterproductive and manufacturers must ensure that their models do not hit the recall headlines too often. It is enough to deter potential buyers from queuing up at dealerships, especially when they are so spoilt for choice. There are enough cases of automakers in India who have lost connect with customers and paid a heavy price in the process.

Senior Deputy Editor

(This article was published on April 16, 2014)

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Anatomy of a recall