Legal Protections For Consumers Dealing With Electric Vehicle Defects

Bharat Anand, Partner, along with Achint Kaur, Counsel, and Mukul Aggarwal, Principal Associate at Khaitan & Co, explore the legal protections available for faulty electric vehicles.

In India, the Electric Vehicles (EV) sector is projected to grow at a 45.5 per cent compounded annual rate from 2022 to 2030, with expected annual sales reaching 1.6 crore EVs by 2030. To manage the anticipated influx of EVs, it’s vital to address various risks, including safety and battery costs.

In terms of regulations, if a defective EV causes harm, the manufacturer or seller bears product liability, being responsible for compensating the consumer for any damage or inconvenience.

The Ministry of Road Transport and Highways (MoRTH) can enforce mass product recalls if a defect negatively impacts the environment, drivers, passengers, road users, or consumers; if the defect is reported to MoRTH; or if the product or component is faulty. To bolster EV safety, the Central Government has implemented technical standards such as AS-156 and AIS-038 (Rev 2), mandating tests for water immersion and thermal propagation and requiring smart battery management systems to prevent fires and overcharging.

These standards became mandatory from 1 October 2023 under the production-linked incentives and FAME II schemes to enhance human safety.

- Advertisement -

Globally, product liability laws in the EV sector are evolving. Courts are conducting detailed analyses to determine liability in cases involving autonomous or semi-autonomous vehicles, including those with artificial intelligence and IoT technologies.

For instance, demonstrating liability in high-tech automobiles often involves proving that a reasonable alternative design could have prevented the harm, a complex technical issue. In semi-autonomous vehicles, traditional negligence theories are used to establish liability, like determining if driver inattention contributed to the defect.

In a notable case in April 2023, a California court cleared Tesla Inc of liability in Justine Hsu versus Tesla Inc, ruling that the driver did not adhere to safety norms while using autopilot technology.

To improve EV safety, Indian companies can adopt several measures to protect their reputation and revenue. Developing a product liability strategy and a defence mechanism, including real-time performance logging and predictive battery maintenance, can help identify the source of damage. Conducting compliance assessments and periodic product risk management can proactively identify and address defects.

EV companies might also include safeguards in supply and distribution contracts, providing user instructions and warnings to outline customer responsibilities. These contracts can stipulate that products are provided ‘as is’ or ‘as available’ with limited warranties and excluding any implied warranties to the extent allowed by law.

These measures cover various aspects such as merchantability, fitness for a particular purpose, results obtained, indirect, consequential, incidental, special, or remote damages, and assume the risk, ensuring that the product’s suitability, safety, and performance meet intended requirements.

- Advertisement -
Loading form…
Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

Industry's Buzz

SK Hynix

SK Hynix Backs Optical Interconnects for AI

0
South Korean memory maker backs co-packaged optics to replace copper links and break the 'AI memory wall' in data centres.  South Korean semiconductor giant SK...
Representational image of a satellite

Finnish SAR Imagery Specialist Forms Its India Unit

0
The formation of ICEYE India follows the formation of its German subsidiary last month. The move aims to tap into, what the company describes...
Nexperia

Europe-China Differences Leads to a Split in Nexperia

0
The Dutch chipmaker’s China unit said that a new production line which will produce 12-inch silicon wafer up to 100 percent domestically will be...

Kaynes Technology, BOSGAME Sign MoU To Expand In India

0
The partnership will also explore opportunities for product localisation, value addition, and greater participation in India’s growing electronics ecosystem Kaynes Technology India Limited and BOSGAME...
Piyush Goyal, Minister of Commerce and Industry, Government of India

India, Japan to Deepen Semiconductor and AI Cooperation During Goyal’s Visit 

0
Dedicated semiconductor and AI discussions will anchor Piyush Goyal’s Japan visit, with India seeking greater Japanese investment and technology partnerships. Union Commerce and Industry Minister...

Learn From Leaders

(L-R) Nikesh Gondchawar, Strategic & Technical Advisor – Robotics Manufacturing; Shrikrushna Kakade, Founder Partner; Nikhil Kakade, Senior Technical Advisor – Robotics & Control Systems, SlightGen Solutions LLP

“A Made-In-India Robotic PCB Soldering System That Automates The Through-Hole Soldering Process!” – Shrikrushna...

0
Electronics manufacturing is complex, and automation often comes at a high cost. To bridge this gap and offer a more affordable solution in India,...
Navdeep Narula, Executive Director, Client and Endpoint Solutions, Ingram Micro, India

“Enterprise Computing Is Shifting From CPU to GPU And Now Toward NPU-Based Systems ”...

0
The shift from CPU to GPU to NPU-based computing is redefining today’s enterprise endpoints. In an exclusive conversation, Navdeep Narula from Ingram Micro discusses...

India’s Robotics Push Opens New Hardware Opportunities

0
How do you build India’s physical AI future when critical robot components still come from overseas? Niqo Robotics reveals where the gaps remain.  India’s push...
Gadhadar Reddy, CEO and Founder, NoPo Nanotechnologies

How A Material Thinner Than Human Hair Could Transform EV Batteries And Electronics –...

0
What if a material 200,000 times thinner than a human hair could transform EV batteries, semiconductors, and advanced electronics? NoPo Nanotechnologies is making that...
Raja Rajeev Kumar, Mentor at IIT Startups, Chairman of the Board of Trustees, LaxmiRamaVarma Holdings International, and Founder and CEO, ChromoSoul Ventures

“Build Strong Startups, and Funding Will Follow”- Raja Rajeev Kumar, IIT Startups, LaxmiRamaVarma Holdings...

0
While AI and software startups attract attention and capital, electronics ventures often struggle for both. Raja Rajeev Kumar from IIT Startups, LaxmiRamaVarma Holdings International...

Startups

Akshar Vastarpara, Founder and CEO, Vicharak

“Our SBCs Are Designed As Complete Edge-Computing Platforms That Combine Everything On A Single...

0
An Indian startup builds affordable edge AI boards for robots, drones, and industry, positioning them as Raspberry Pi alternatives. In an EFY interview with...
(L-R) Sri Kusulu Devalla, Co-Founder and Hetendra Singh Rathore, Founder, Segritech

“We don’t just sort fruit; we match every quality grade with the right buyer.”...

0
An agritech startup has developed an AI-powered machine that sorts and grades fruits directly on farms, helping reduce post-harvest losses by connecting produce with...
Dr Naveen Yanduru, CEO, Axiro Semiconductor Private Limited

“India Can Lead In IP—If It BacksIts Own Builders”

0
Axiro Semiconductor designs RF and satellite chips, ships millions worldwide, and retains its startup mindset while tackling complex technical challenges. In a conversation with...
Dr Sanjay Ahuja, Founder and CEO of Cionlabs, India

“We are solving India-specific challenges rather than offering generic ‘black box’ IoT solutions.”

0
From hybrid mesh networking to AI-enabled edge devices, an Indian IoT startup is developing home-grown solutions to improve connectivity, strengthen privacy and support the...
RTLS

Amimotion’s World-Smallest UWB Tags That Give Factories A Digital Nervous System For Physical AI

0
A Bengaluru startup is turning factories into intelligent spaces with tiny UWB tags, AI-powered visibility, and real-time tracking that can automate workflows, improve safety,...