Accusing the automaker of restricting the distribution and sale of its spares in open market, Competition Commission of India has imposed a fine of Rs.420.26 crores on Hyundai Motors India Ltd. 14 other automakers, including the likes of Honda Siel, BMW, Volkswagen, Ford, General Motors, Skoda, Tata etc. were fined on this same charge with an amount totaling Rs.2544.65 crores.
Two other automakers, Reva and Premier, have been let off with warning for indulging in “any competitive practices”. But both these companies will have to follow all the directions that were issued to 15 other companies that were fined.
The main point of contention was the fact that these companies had restricted warranty on many of the spare parts to the fact that customers had to repair and service their cars on the company’s own network of dealers. If the customers went to any third party, to repair spares then the warranty became void. This resulted in the companies selling original spares only to their authorized dealers, which the CCI believed was against the principle of market competition.