The Competition Commission of India (CCI) has imposed a penalty of $421 million on 14 car manufacturers for reportedly “violating trade practices” in the spare-parts market.
Those being fined are: Honda Siel Cars India, Volkswagen India, Fiat India, BMW India, Ford India, Maruti Suzuki, Tata Motors, General Motors India, Hindustan Motors, Mahindra & Mahindra, Mercedes-Benz India, Nissan Motor India, Skoda Auto India and Toyota Kirloskar Motor.
The CCI said that the penalty represents 2% of these companies’ average turnover and is to be paid within 60 days.
“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 given access to branded spare parts and diagnostic tools. This hampered their ability to provide services in the after-market for repair and maintenance of cars.
“Having a monopolistic control over the spare parts and diagnostic tools of their respective brands, the car companies then charged arbitrary and high prices for their spare parts.
“They 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.”