No recall policy in India: Maruti Suzuki
Indian automobile major Maruti Suzuki, having sold A-star with faulty fuel tanks in the country, has recently taken cue from the loophole in the Indian policy frame which bunged up the company to inform the public about the one-lakh recalls of A-star.
The cars were reportedly having fault in the gaskets. In fact, the company also defended its decision to not to inform the market regulator, SEBI saying that the involved amount wasn't enough to make a significant impact on the company's financials.
Following the suit of recalls already announced by players like Toyota, Honda and Hyundai, the Indian market leader announced the recall of A-star models produced between the launch in November 2008 and August 22, 2009, including those exported.
The company spotted the defect in November 2009 as a result of internal quality monitoring by the company. In December, Maruti started sending letters to customers asking them to bring their cars to dealerships in order to replace the part and as no customer compliant was received, Maruti Suzuki termed the recall as a proactive measure.
However, as the company claims that the policy structure in India is such that it didn't need to inform the public but if it would have gone the other way round, it would have surely added to the brand equity of the market leader.