The Competition Commission of India (CCI) had recently imposed a heafty total penatly amount of about Rs. 2,500 Crores on fourteen prominent brands in the Indian market. The action was taken by CCI as a petition stating that carmakers have been engaging in anti-competitive practices and they have failed to bring genuine parts in the open market.
Some of the big carmaker names like Tata Motors (Rs 1,346.46 crore), Mahindra & Mahindra (Rs.292 crore), General Motors (Rs 84.58 crore) and Honda Car India (Rs.78 crore) have been penalized along with other names likes Volkswagen India, BMW India, Ford India, Honda Siel, Nissan Motor, Skoda Auto India Fiat India, Hindustan Motors, Mercedes Benz, and Toyota Kirloskar India. Tata Motors and Mahindra have reportedly challenged the penalty. As per Mahindra & Mahindra filing to NSE, “The company aggrieved by this order proposes to appeal against it before the appropriate forum.” Similarly, official from Tata Motors said, “would be filing an appeal against this order before the appropriate authorities.”
As per the petition, “operate /regulate or otherwise control the operations of various authorized workshops and service stations which are in the business of selling automobile spare parts, besides rendering after-sale automobile maintenance services.” It was found that these car-makers have reportedly violated competition norms with respect to their agreements with local Original Equipment Suppliers (OESs).
Speaking more on the fine imposed Honda, a spokesperson from HCIL said, "We are aware of order. However, there is no official communication from CCI to Honda Cars India as yet. Once we receive the same, we will evaluate the order and respond accordingly."
