Ministry of Road Transport and Highways will implement a new vehicle recall policy from the 1st of April 2021. Under the new policy, consumers will be able to lodge complains related to various problems with the motor vehicle and the government can issue a recall notice to the brand, which in turn needs to initiate a recall process to rectify the vehicle when the solution is approved at no cost to the customer. The new policy may also attract fines ranging from INR 10 lakh to INR 100 lakh to the vehicle manufacturers depending on the vehicle type. Currently, manufacturers follow the voluntary recall policy but this new initiative could bring a new change leading to mandatory vehicle recalls.
Vehicle manufacturers will also need to test their products to meet certain standards and if the norms are not met the government can initiate a recall under which the manufacturer will have to find a solution to fix the problem by changing parts free of cost to the customer. The government will also be notifying the customers about the reason for the recall and the risks involved with it. In case the manufacturer does not agree with the government they can move the court.
According to the Ministry of Road Transport and Highways, vehicles older than 15 years will attract the following increase in registration. From 1st October 2021, all cars including private and commercial will cost INR 5,000 and all the two-wheeler will cost INR 1,000 as registration fees. Imported two-wheelers will be charged INR 10,000 and Imported Cars INR 40,000. Also, the penalty amount for motorcycles is INR 300 and for cars INR 500, which is applicable for every month of delay.
According to the new voluntary vehicle scrappage policy, vehicle owners which scrap their vehicles voluntarily will receive a certification and the government is proposing all the automotive manufacturers provide a discount of 5 per cent on the purchase of a new vehicle against the scrapping certificate. State Governments will also have the option of incentivising the customer who buys a new vehicle by scrapping their old vehicle. Reports suggest that this new policy will eliminate close to 51 lakh vehicles older than 20 years and close to 17 lakh medium and commercial vehicles older than 15 years, considerably reducing air pollution, especially in the metropolitan cities. This will also improve the safety quotient of both the vehicle occupants as well as other road users.