‘Fair practices’ and ‘fair competition’ are what the business schools teach to mangers and CEOs of these giant automotive companies. Still it couldn’t be tolerated how these important pointers of ethics were avoided when it came to light that Competition Commission of India (CCI) fined most of the automakers in India for violating certain norms.
As per to CCI, these automakers have escaladed fair play practices in the trade norms of spare parts and after market service. The regulation authority carried out an investigation last month and is yet to deliver the verdict.
The case came to light when three car owners visited local workshops and were surprised to find that genuine spare parts of their automobiles weren’t available freely in the market. Proving worst, those workshops too didn’t have the diagnostic tools required for a brief inspection. Drastically, they said the OESs were restricted by OEMs from retailing parts in the spare markets at a lower price tag.
Naming the automakers on which the penalty is levied are BMW India, Mercedes-Benz India, Toyota Kirloskar, Honda Cars India, Fiat India Automobiles, Volkswagen India, GM India, Ford India, Nissan Motor India, Skoda Auto India, Hindustan Motors and Mahindra & Mahindra.
The total fine imposed on 14 auto companies is of Rs 2,545 crore. The individual amount concludes 2% of the company’s average turnover. It is slated the fined amount shall be deposited within 60 days after the receipt of order. CCI claimed this anti-competitive practice has affected more than two crore customers so far.
In the line of having scored most shame amongst the competitors, Tata Motors stood first in the list with maximum fine of Rs 1,346.46 crore, Maruti followed on the second position with Rs 471.14 crore, Mahindra & Mahindra on third with Rs 292.25 crore, while the fourth goes to Toyota Kirloskar Motors worth of Rs 93.38 crore.