The Competition Commission of India (CCI) has penalised 14 automobile manufacturers to the tune of Rs 2,544.65 crore, citing unfair practices.
The list, which is part of the order and is available on the CCI website, includes virtually all notable names of the Indian automotive industry like Honda, Volkswagen, FIAT, BMW, Ford, General Motors, Hindustan Motors, Mahindra & Mahindra, Maruti Suzuki, Mercedes-Benz, Nissan, Škoda, Tata Motors and Toyota.
According to the report, the CCI has concluded “that the OEMs are imposing unfair prices in sale of spare parts…which is substantiated by the considerable mark up in prices and significant variation across spare parts”. The CCI’s report states that the “average mark up in prices of spare parts is approximately 100 per cent in case of most OEMs while the upper limit of such mark up is approximately 5000 per cent”.
The CCI has directed all manufacturers to desist from such restrictive practices with immediate effect. Meanwhile, manufacturers have declined to comment on the matter.
