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CCI slaps penalty on Maruti, Tata, Mahindra, Honda, GM for unfair practices

Snapshot: The Competition Commission of India has imposed a fine of over Rs 2,500 crore on 14 carmakers in India.

The Competition Commission of India (CCI) has slapped a combined penalty of over Rs 2,500 crore on 14 carmakers in India for their involvement in unfair trade practices in the spare parts markets. The defaulters include some of the big manufacturers in the country, with Tata Motors facing the maximum fine of Rs 1,346 crore, followed by Maruti Suzuki Rs 471 crore, Mahindra & Mahindra Rs 292 crore, General Motors Rs 85 crore and Honda Cars India Rs 78 crore. 

Other automakers in India who are facing the wraith of the CCI include, Honda Siel, Volkswagen India, BMW India, Fiat India, General Motors, Hindustan Motors, Mercedes Benz, Nissan Motors, Skoda Auto India and Toyota Kirloskar. 

The said penalty and the decision by CCI was detailed in a 215-page order, which read that the auto companies indulged in anti-competitive practices as they did not make genuine spare parts freely available in the open market, upholding the contentions of a petition filed by a complainant in 2011. The fine has been calculated at 2 per cent of the average turnover. 

“Its too early to comment. We are yet to study the order.” said Mahindra and Honda spokespersons. The spokesperson for Tata Motors - who have received the maximum fine, said they will respond after studying the order. The CCI seems to have clubbed the Jaguar Land Rover revenues with Tata Motors, while arriving at the penalty. 

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