New car or bike with a manufacturing defect? Your rights under consumer law

A new car or two-wheeler is one of the largest purchases a family makes. When it keeps going back to the workshop with the same problem, such as an engine that stalls, gears that slip, a battery that drains or water entering the cabin, the buyer is entitled to more than an endless round of repairs. The Consumer Protection Act, 2019 gives a remedy against both the dealer and the manufacturer.

Is it a manufacturing defect?

The Act defines a defect as any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard required by law, by an express or implied contract, or as claimed by the trader (Section 2(10)). For a vehicle, that includes falling short of what the brochure, the owner’s manual or the salesperson promised.

Not every problem is a defect. Normal wear and tear, accident damage, poor maintenance or changes made after purchase usually are not. A useful working test: did the problem appear early, under normal use and within the warranty period, and does it keep coming back despite repairs at the authorised service centre? The more clearly the answer is yes, the stronger the case.

Who is responsible

• The manufacturer, for a defect in design or manufacture, and for its warranty.
• The dealer, for its own lapses: selling a vehicle with a known problem, a careless pre-delivery inspection, delay or refusal of warranty repairs, or false statements while selling.
• The authorised service centre, where it is a separate business, for poor or negligent repairs.

A consumer complaint usually names all of them, so that the Commission can decide who is responsible for what.

What to do as soon as the problem appears

• Report the problem to the authorised service centre every time. Make sure the job card records your complaint in your words, with the date and the odometer reading, and keep a copy of every job card and invoice.
• Write to the manufacturer’s customer care by email and note every complaint or ticket number.
• Photograph or video the problem when it happens: warning lights, noises, leaks, smoke.
• If a repair has not worked, do not sign a delivery note saying you are satisfied. Write that the problem persists.
• You can register the grievance with the National Consumer Helpline (call 1915, or WhatsApp 8800001915). It is a free service of the Department of Consumer Affairs that takes the complaint up with the company before any case is filed.
• If nothing works, send a legal notice to the dealer and the manufacturer setting out the defect, the repairs tried and what you want. See what to put in a consumer legal notice.

Where and when to file

The District Consumer Disputes Redressal Commission hears complaints where the price paid is up to ₹50 lakh, which covers nearly every car and two-wheeler. You can file where you live or work, so a Coimbatore buyer can file in Coimbatore even if the dealer or manufacturer is elsewhere. Complaints can be filed online on e-Jagriti. The complaint must ordinarily be filed within two years of the cause of action, such as the final refusal to repair or replace. For the fee and appeal deadlines, see fees, time limits and appeals.

What the Commission can order

If the defect is proved, Section 39 allows the Commission to order one or more of the following:

• removal of the defect;
• replacement with a new vehicle of similar description, free from defect;
• return of the price, with interest;
• compensation for loss or injury caused by the opposite party’s negligence, and punitive damages in a suitable case; and
• costs of the case.

If the defect causes injury, or damages other property, a product liability claim can also be made. Under Section 84, the manufacturer is liable for a manufacturing defect, a design defect, a deviation from specifications, failure to match an express warranty, or inadequate instructions or warnings, even if it was not negligent.

Mistakes to avoid

• Getting warranty repairs done outside the authorised network without a written reason. It gives the manufacturer an argument that the vehicle was tampered with.
• Modifying the vehicle, or selling it, before the dispute is decided. The Commission may want it inspected.
• Relying on phone calls. What is not in writing is hard to prove.
• Waiting for the two-year limit to run out while repairs drag on.

Common questions