Car manufacturers in India have received a major blow. The Competition Commission of India (CCI) has slapped a penalty of Rs. 2,545 crore of 14 car manufacturers in India.
This penalty has been imposed due to violation of the trade norms in the spare parts and after service market and includes car manufacturers such as Maruti Suzuki, Tata Motors, Honda, Volkswagen, Fiat, BMW, Ford, Mahindra, Mercedes-Benz, Nissan, Skoda and Toyota. The penalty has to be paid by each manufacturer accounting to 2% of their average turnover, which totals to Rs. 2,544.64 crores. This penalty has to be deposited within 60 days of receiving the 215-page order by the CCI.
This move has been taken since these manufacturers had denied providing genuine spare parts in the aftermarket, and hence hampering their ability to service vehicles better. Car companies have been claimed to be charging higher prices for their spare parts by having monopolistic control.
Maximum fine of Rs. 1,346.46 crore has been slapped on Tata Motors, Maruti Suzuki (Rs. 471.14 crore), Mahindra & Mahindra (Rs. 292.25 crore) and Toyota (Rs. 93.38 crore), General Motors (Rs. 84.58 crore), Honda (Rs. 78.47 crore), Skoda (Rs. 46.39 crore), Ford (Rs. 39.78 crore), Fiat (Rs. 29.98 crore), BMW (Rs. 20.41 crore), Mercedes-Benz (Rs. 23.08 crore), Hindustan Motors (Rs. 13.85 crore), Volkswagen (Rs. 3.25 crore) and Nissan (Rs. 1.63 crore).
A copy of this order would also be sent to Ministry of Road Transport and Highways and ACMA (Automotive Component Manufacturers Association).
Source – PTI & NDTV Auto