MANAGING PRODUCT RECAL AND CUSTOMER LOYALITY IN CASE OF AUTOMOBILE INDUSTRY

Post globalization all over the world, product recall in various industries has become a primary obligation for a manufacturer in meeting the safety standards of use to the consumers. Despite a company's best efforts to design, manufacture and sell safe and reliable products, the possibility still exists those dangerously defective products may reach the consumers. These products may cause accidents, leading to adverse verdicts in product liability litigations. Unfavourable publicity may result in loss of sales and damage to the company's reputation. In the past, product failures were often attributed to local or functional errors in product design, the manufacturing process, or inadequate labelling with limited impact. However, in recent years, a series of high profile product recalls in Indian automobiles including Maruti Dezire, S cross, Renault Kwid, Mahindra Scorpio had shaken the public confidence in the ability of the manufacturers', regulatory bodies and governments to assure the safety of products to consumers. It would lead to huge litigation fees and loss of sales, reduced manufacturing output and significant repercussions in global scale. This research paper addresses the concept of Product recall in the Indian context and Indian automobile industry, the Government of India /regulatory agencies and certain strategies to be followed.