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CCI imposes Rs 2544.64 cr penalty on 14 auto companies

The CCI has imposed a penalty of Rs 2544.64 crores on 14 auto companies for distorting fair competition and charging arbitrary and higher prices for spare partsd

The CCI has imposed a penalty of Rs 2544.64 crores on 14 auto companies for distorting fair competition and charging arbitrary and higher prices for spare parts.

The list includes some of the top names of the industry – Honda, Volkswagen, BMW, Ford, General Motors. These companies have been penalised for restricting the growth of the spare parts market, for abusing their dominant position and not allowing independent maintenance companies or garage owners to provide after sales services to customers.

According to the Competition Commission of India (CCI) around 2 crore people and consumers are impacted by such conduct of these auto companies. Last week  Maruti Suzuki had tried a stay on this order, and on this investigation which had started way back in 2011.

Sixty days time has been given to these automakers to submit the penalty of Rs 2544.64 crore. However, they will have an opportunity if they deem appropriate to approach the Competition Appellate Tribunal and challenge the order of the CCI.

These companies had brought to the notice of the government as well as the CCI that there are no regulatory and guiding principles for how these spare parts should be maintained and manufactured and that is the reason they don’t want to involve independent garage owners into this exercise.

This is something that will be communicated by the CCI to the ministry of road and transport.

V G Ramakrishnan, MD, Frost & Sullivan of South Asia in an interview to CNBC-TV18 threw more light on this.

The competition regulator has found the following 14 companies guilty of abusing their dominant position and indulging in anti-competitive agreements:

1. Honda Siel Cars India
2. Volkswagen India
3. Fiat India Automobiles
4. BMW India
5. Ford India
6. General Motors India
7. Hindustan Motors
8. Mahindra and Mahindra
9. Maruti Suzuki India
10. Mercedes-Benz India
11. Nissan Motor India
12. Skoda Auto India
13.  Tata Motors Ltd.
14. Toyota Kirloskar

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