Recall norms tightened for Auto cos:

The Road Transport and Highways Ministry has notified on March 12, 2021 the vehicle recall policy for manufacturers defaulting in their production which will come into effect from April 1 ,2021 . According to the policy, depending on the number of complaints and types of vehicles (two-wheelers, three-wheelers, four-wheelers, among others) that have to be recalled, the Government can impose fine of up to ₹10 lakh, ₹20 lakh, ₹50 lakh or ₹100 lakh.
India, at present, follows a voluntary vehicle recall policy, and this is likely to be a part of shift towards mandatory vehicle recall policy.
Under the new Motor Vehicles act, 2019 the manufacturer of the defaulted vehicle has to re-imburse the buyer at full cost or replace it with better specifications.
The transport ministry has provided minimum number of complaints for different types of vehicles that are required for initiating vehicle recall.



Vehicle Sales(units) no of complaint for recall
Three wheeler, Cars, ≤500 20% of Sales or 100
SUVs. 501-10000. 150
>10000. 1250

Two wheeler. Upto 3000. 600

Large passenger vehicle, 3% of Annual sale
Trucks, Buses