Hyundai Motor India slapped a fine of Rs 420 crore for anti-competitive practices

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Added in: Hyundai

Hyundai Elite i20

The Competition Commission of India has slapped a penalty of Rs 420 crore on Hyundai Motor India Limited for unfair trade practices. There were two other carmakers in the dock too, namely Mahindra Reva Electric Vehicles Pvt Ltd, and Premier Ltd for violation of competitive practices. The latter two, however, were spared the fine according to an official CCI statement.

CCI found Hyundai Motor India Ltd (HMIL) guilty of violating the competitive practices, not making its genuine spare parts freely available in the open market. This forced the customers to get their cars compulsorily repaired only at the Authorized Hyundai services stations, and not at third party garages, which turn out cheaper for car owners, but take away some share of the automaker’s revenues.

The fine was calculated at 2% of the HMIL’s average turnover. The company has been asked to pay the fine within a period of 60 days, along with a notice to cease and desist from such practices.

“The car company was found to be indulging in practices resulting in denial of market access to independent repairers as the latter were debilitated to provide services in the aftermarket for repair and maintenance of cars for want of genuine spare parts,” a CCI statement said.

“The car companies were found to be indulging in practices resulting in denial of market access to independent repairers as the latter were debilitated to provide services in the aftermarket for repair and maintenance of cars for want of genuine spare parts. Further, these car companies were also found to be using their dominant position in the market for spare parts and diagnostic tools to protect their market for repair services, thereby distorting fair competition” the CCI statement said.

In the case of Reva, the Commission, in its investigation, observed that the company’s spare parts were, to some extent, available over the counter,” it said.

“Considering the mitigating factors that worked in favour of Reva and Premier, the two car companies were absolved from paying monetary penalty,” the statement added.

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  • Ajit says:

    Even Skoda,

  • Prathmesh says:

    How can Hyundai be targeted for such an accusation?
    In case you’ve missed out on facts, Bajaj Auto has stopped counter sales of parts from the past 36months for Kawasaki and KTM, making it difficult for parts to be available to the customers, forcing them to approach the service centers and furthermore parts are not even available in stock.

    Maruti Motors too doesn’t give counter sales, nor Ford, neither Honda.

    If one company is to be targeted, why are the others overshadowed?

    Media plays the role of a publicist. If all are at fault, mention them. Why hide the others away and pinpoint Hyundai just because they are doing pretty well in the market with quality products?

    Corruption and Interception are unacceptable, if equality is to be shown here, mention the others too.

    Not right to pinpoint a company to bring them down in people’s minds. While having others hiding over under the sheets. Bring them to the spotlight too.

    Like I said, if the media is a publicist to the people of India, why not equally publicise all, why just partially?

    Is Favoritism The Cause For Hiding Other Names?

    It is appalling to see media highlighting peak performers as always.

  • rohan singh majila says:

    Hyundai is a popular auto company in India and they launch a good looking car every month.

  • pruthvi says:

    What about ford, Ford never sells ford fiesta spares in the open market.