Product recalls come with a cost. And shareholders of Maruti Suzuki saw the impact of one such recall on the exchanges. At ₹9,705 a share, the day’s lowest price was 1.17% lower than the previous day’s close of ₹9,820.35 a share on the BSE.
The country’s largest carmaker on Wednesday announced a recall of its newly launched Swift and Dzire models, which were manufactured between May 7 and July 5 this year. It plans to inspect 566 Swift and 713 Dzire models for a possible fault in their airbag controller units.
While the new generation Swift launched in February this year, the Dzire started selling last year. Both models were best-selling in their respective segments.
“Recall campaigns are undertaken globally to rectify faults that may be potential safety defects. Starting July 25, 2018, owners of the vehicles included in this recall campaign will be contacted by Maruti Suzuki dealers for inspection and replacement of the faulty part free of cost,” Maruti Suzuki said in a statement.
Customers can log on to Maruti Suzuki's website and fill out their chassis number to know if their vehicle is part of the recall campaign. A chassis number is a unique identifier that is embossed on the car, usually within the engine bay, and also found on the vehicle registration document.
“Customers may also contact the nearest Maruti Suzuki dealer workshop to ascertain if their vehicle is among the above vehicles,” the company’s statement reads.
Globally, a recall makes it mandatory for the manufacturer to notify the customer and rectify the issue, with the process being monitored by an official authority. Since India does not have an official recall policy, the automakers have to adhere to the Voluntary Code on Vehicle Recall set by the Society of Indian Automobile Manufacturers (SIAM), a body of automakers.
SIAM’s code, published in 2012, says “if in the opinion of manufacturer some vehicles have issues which pose a safety defect”, such vehicles are “voluntarily inspected and rectified” by the manufacturer or importer.
This is the second time this year that Maruti Suzuki is recalling its models. However, calling it a “service campaign”, the company had announced in May that it will inspect a total of 52,686 Swift and Baleno hatchbacks for a possible defect in the brake vacuum hose.
Earlier this week, the country’s fifth largest car maker Honda Cars India also announced a recall of 7,290 units of the all-new Amaze compact sedan to fix a potential issue with the electronic power steering.