In a sensation of sorts, 14 major automotive players in the Indian market have been collectively slapped a fine of Rs. 2,545 crore for violating trade norms in the spare parts and after services market. And the violators are- Tata Motors, Maruti Suzuki, Honda Siel Cars India, Volkswagen India, Fiat India Automobiles, BMW India, Ford India, General Motors India, Hindustan Motors, Mahindra & Mahindra, Mercedes-Benz India, Nissan Motor India, Skoda Auto India and Toyota Kirloskar Motors.
According to the Competition Commission of India (CCI), the body responsible for levying the fine, these car companies violated competition norms with respect to its agreements with local Original Equipment Suppliers (OESs) as well as in terms of pacts with authorised dealers. The 215-page order says that these manufacturers have“imposed absolute restrictive covenants and completely foreclosed the after market for supply of spare parts and other diagnostic tools”. For each entity, the individual fine amounts to two per cent of their average turnover. The penalty is to be deposited within 60 days of receipt of the order.
“The 14 car companies were found to be indulging in practices resulting in denial of market access to independent repairers as the latter were not provided access to branded spare parts and diagnostic tools which hampered their ability to provide services in the aftermarket for repair and maintenance of cars,” the statement added.
Tata Motors faces the maximum brunt, followed by Maruti Suzuki. Here’s how all of them stack up:-
|Tata Motors||Rs. 1,346.46 crore|
|Maruti Suzuki||Rs. 471.14 crore|
|Mahindra & Mahindra||Rs. 292.25 crore|
|Toyota Kirloskar Motors||Rs. 93.38 crore|
|General Motors||Rs. 84.58 crore|
|Honda Siel||Rs. 78.47 crore|
|Skoda Auto India||Rs. 46.39 crore|
|Ford India||Rs. 39.78 crore|
|Fiat India Automobiles||Rs. 29.98 crore|
|BMW India||Rs. 20.41 crore|
|Mercedes-Benz||Rs. 23.08 crore|
|Hindustan Motors||Rs. 13.85 crore|
|Volkswagen India||Rs. 3.25 crore|
|Nissan Motors||Rs. 1.63 crore|
Source: NDTV Auto