Thursday, June 15, 2017
By Manoj Kumawat
Hyundai Motors India Fined Rs. 87 Crore By Competition Commission
Competition Commission of India has fined the penalty of Rs. 87 Crore on Indian wing of Korean car maker Hyundai Motors for using malpractices on offering discount over the cars manufactured by the group. The commission also instructed company to keep itself away from anti-competitive practices. In its order of 44 pages the commission said that the anti-competitive practice adopted by Hyundai Motor India Limited includes “putting in place arrangements that resulted in resale price maintenance by way of monitoring of maximum permissible discount level. This was done through discount control and penalty mechanisms for non-compliance of the discount scheme.”
The commission also added that it seems that car maker maintains its individual discount control mechanism according to which its dealers across the country are allowed to offer the discount percentage maximum up-to permissible range and not above the recommended range.
The penalty of Rs.87 Crore on Indian alliance of Korean car maker will be charged on the basis of 0.3 percent of company’s average turnover since the financial year 2013-14. Moving ahead the commission also said that the car maker tried to do break the competition law by adopting the practice which facilitated it to maintain it’s the resale price of its car by mandating its dealers to make use of recommended lubricants and oils and fining them for using non-recommended lubricants and oils.
