Consumer Complaint against Automobile Industry

How to File a Complaint Against the Automobile Industry?

Online Legal India LogoBy Online Legal India Published On 06 Sep 2022 Updated On 20 Jun 2025 Category Consumer Complaint

When disputes arise in the automobile world, whether it is for a faulty vehicle, unexpected charges, or poor service, the old ways of seeking justice meant long waits, piles of paperwork, and multiple court visits. With Online Dispute Resolution (ODR), everything shifts online: you can file your grievance, share documents, engage in hearings, and receive a decision all from the comfort of your home. ODR brings a faster, smoother, and more affordable path, guided by India’s consumer protection laws. In this article, we will walk through how to file a complaint against the Automobile Industry to resolve problems with car dealers, service centres, or auto manufacturers.

Common Issues Faced By Consumers of the Automobile Industry

Here are some of the most common issues faced by consumers in India when dealing with the automobile industry:

  • Overcharging or billing beyond the printed MRP on spare parts and lubricants, creating unexpected costs and even hostile encounters at service centres.
  • Inflated service bills with hidden additions like engine decarbonising, wheel balancing, or engine dressing that often aren’t needed.
  • Replacement of genuine parts with counterfeit or substandard alternatives, which compromise vehicle safety and violate consumer trust.
  • Delays in repair completion and poor communication, leaving consumers in the dark about timelines and repair status.
  • Service centres charge for labor and diagnostic work even when vehicles remain unfixed or parts are returned damaged?.
  • Dealers pressuring customers into buying unnecessary insurance, accessories, or packages as a condition for vehicle delivery?.

Internal Escalation with the Dealer or Manufacturer before ODR

When you are facing issues with an automobile, whether a faulty component, hidden charges at the showroom, or unhelpful service. It is important to first reach out directly to the official support channels of the manufacturer, dealer, or service centre. Contact their customer service via phone or email, explain the problem clearly, and give them 7–10 days to respond or resolve the issue. If there is still no satisfactory outcome, escalate the matter to the unit’s appointed Grievance Officer or Customer Connect team.

These internal steps are crucial: they show that you tried resolving the matter before turning to official platforms like ODR or consumer forums, which is often a requirement under Indian consumer law. Only after these efforts, if the response remains inadequate, should you proceed with filing a formal complaint through ODR.

File a Complaint in Consumer Court

If the company doesn’t respond or solve your issue, you can file a case in the appropriate Consumer Commission based on the claim amount:

  1. District Consumer Disputes Redressal Forum (DCDRF): For claims up to Rs.1 crore.
  2. State Consumer Disputes Redressal Forum (SCDRF): For claims above Rs.1 croreand up to Rs.10 crore.
  3. National Consumer Disputes Redressal Forum (NCDRF): For claims above Rs.10 crore.

Problems Involved in the Consumer Court Process

When it comes to resolving automobile industry disputes, traditional consumer courts often come with significant downsides:

  • Long Delays & Backlogs

Consumer cases can drag on for years, with frequent adjournments and repeated visits to distant courtrooms.

  • High Cost & Red Tape

Filing fees, notarized affidavits, postal charges, travel, and sometimes legal representation add up quickly even for small claims.

  • Weak Enforcement of Orders

Even after a successful ruling, one-third of orders remain unfulfilled. You may need to file additional petitions to enforce the award.

  • Limited Compensation

Consumers often receive very poor token amounts as litigation costs for cases that took years, while lawyers continue to profit.

  • Poor Infrastructure & Support

Many consumer forums are understaffed, lack proper courtrooms and documentation rooms, and function inefficiently.

What is Online Dispute Resolution?

Online Dispute Resolution (ODR) is a streamlined, completely digital approach to resolving disputes, especially small and medium-value cases, using online platforms instead of in-person court visits. It combines traditional methods like negotiation, mediation, and arbitration with internet-based tools such as video calls and secure document sharing. Under this system, the entire process from filing the complaint to final resolution happens online, making it faster, more accessible, and cost-effective compared to conventional court proceedings.

ODR incorporates traditional dispute resolution methods like negotiation, mediation, and arbitration, but in an online environment:

Mediation:

Mediation involves a neutral mediator who helps both sides communicate and reach a mutually acceptable solution. It is voluntary, confidential, and aims to preserve relationships.

Arbitration:

Arbitration is a more formal process where an arbitrator hears both sides and makes a binding decision, similar to a judge but outside the courtroom.

This system is faster, more accessible, and cost-effective compared to traditional court procedures. It reduces legal delays, avoids lengthy paperwork, and offers convenience, especially helpful for people in remote areas or with limited resources.

Why ODR Is a Better Choice for Auto Complaints?

By contrast, Online Dispute Resolution offers clear advantages:

  • Faster Resolution

Issues can be addressed in weeks or months, not years.

  • Lower Costs

Mostly free or minimal fees, with no travel, paperwork, or lawyer costs.

  • Convenient & Paperless

Everything from filing to evidence submission and hearings happens online, with video conferences and e-notices.

  • Secure & Confidential

Documents are shared securely with data protection, ensuring confidentiality often missing in open courtrooms.

  • Reduces Court Load

Eases the burden on traditional consumer forums, helping speed up the entire justice system.

How to File a Complaint against the Automobile Industry through ODR?

You can file your complaint digitally and settle the dispute legally without ever stepping into a courtroom. Here is how to go about it:

Step 1: Collect Evidence and Documentation

Before starting the ODR process, gather all relevant documents related to your automobile complaint. This may include your purchase invoice, service records, warranty papers, insurance claim documents, if applicable, any written communication with the company or dealer, inspection reports, and photographs or videos of the issue. These records help establish proof and support your claim during mediation or arbitration.

Step 2: File a Complaint with ODR

You can initiate your complaint using either the Government’s ODR platform or through a private ODR provider such as Online Legal India. While the government platform is legally sound, it often involves a longer process. A verified private ODR service usually offers a smoother, faster filing experience and helps you present your case effectively.

Step 3: Participate in Mediation

Once your complaint is admitted, a certified mediator is assigned. The mediator connects with both you and the automobile company or dealer through online channels like video calls, emails, or secure chat. Their role is to understand both sides, clarify misunderstandings, and guide both parties toward a mutual resolution, ideally within a limited period.

Step 4: Proceeding to Arbitration if applicable

If the mediation does not succeed, the matter can escalate to arbitration. For this to happen:

  • The mediator must officially confirm that the mediation failed.
  • There should be an arbitration clause in the original agreement, like the car sales contract or service terms, or both parties must agree to arbitration.
  • The issue should fall under arbitrable matters as per Indian law, i.e., not criminal or personal.
  • Your case should be filed within the legal time limit.
  • All case-related documents and the mediation failure report must be filed properly.

Step 5: Arbitration Hearing

During arbitration, you and the opposite party, whether a dealer, manufacturer, or service provider, present your case before a neutral third party called an arbitrator. This arbitrator is usually a legal expert or an industry specialist with experience in resolving such disputes. The arbitrator carefully reviews all the evidence, listens to both sides, and then delivers a decision. The entire process is conducted as per the Arbitration and Conciliation Act, 1996, which ensures that the procedure is fair, transparent, and legally valid.

Step 6: Enforce the Arbitral Award

After reviewing the facts, the arbitrator issues a final verdict. This decision is legally binding and has the same effect as a civil court order. If the automobile company fails to comply, the award can be enforced through legal channels, offering you strong legal protection without spending years in court.

Conclusion

Fighting against faulty vehicles or unfair service doesn’t have to mean long court battles. With Online Dispute Resolution and knowing how to file a complaint against the Automobile Industry, you can resolve your complaints faster, legally, and entirely online. At Online Legal India, we help you file your ODR complaint with expert guidance, right from drafting to mediation and arbitration support. Our team ensures your case is properly handled under Indian consumer laws, saving you time, effort, and stress. Contact our experts today.


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