14 major manufacturers including Tata and Maruti collectively slapped a fine of Rs. 2,545 crore

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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

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