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CCI Wants Spares Market for Cars to be Less Expensive

Published: 30th August 2014 06:00 AM  |   Last Updated: 29th August 2014 11:03 PM   |  A+A-

NEW DELHI: The Competition Commission of India (CCI)  has asked the spare parts market to be broad based and less expensive for consumers, this should ease the woes of every car owner as it may lead to fair-priced spares.

This will help every car user as spares for cars had become a contentious issue with the manufacturers as they were allegedly misusing their dominant positions.

The Competition Commission of India directive came after it penalised India’s top 14 car makers Rs 2,545 crore on Monday for unfair trade practices, and the apex fair practices watchdog said it wanted to ensure that spare parts maintenance market gets less expensive for consumers.

Ashok-Ch-awla.jpgApart from slapping the penalty, the watchdog has directed the carmakers to “cease and desist” from anti-competitive practices.

“Our whole attempt was to ensure that the spare parts maintenance market gets more broad based and user friendly and less expensive for consumers,” CCI Chairman Ashok Chawla said here on Friday.

A copy of the Competition Commission of India order would be sent to the Ministry of Road Transport and Highways and ACMA (Automotive Component Manufacturers Association).

Penalty has been imposed on Maruti Suzuki, Tata Motors, Honda Siel Cars India, Volkswagen India, Fiat India Automobiles, BMW India, Ford India, General Motors India, Hindustan Motors, M&M, Mercedes-Benz India, Nissan Motor India, Skoda Auto India and Toyota Kirloskar Motor.

Maruti Suzuki India, Mahindra & Mahindra and Tata Motors have said they would challenge the CCI order. A detailed CCI investigation had revealed that these car companies violated competition norms with respect to its agreements with local Original Equipment Suppliers (OESs) as well as in terms of pacts with authorised dealers. The Commission had also found that these companies, who were found to be dominant in the after markets for their respective brands, abused their dominant position affecting around two crore car consumers, it  added.



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