India regulator fines carmakers $420 million for anti-competitive practices
India’s pricing regulator has fined more than a dozen global and local carmakers a total of 25.5 billion rupees ($420 million) after a probe found they had engaged in anti-competitive practices in the world’s sixth largest auto market.
The Competition Commission of India (CCI) said in a statement it had fined the 14 automakers after its investigation showed they were restricting access to spare parts, which in turn made them more expensive for consumers.
It listed the automakers fined as the local unit of Honda Motor Co (7267.T), Toyota Motor Co (7203.T), Volkswagen AG (VOWG_p.DE) and its unit Skoda Auto, BMW AG (BMWG.DE), Daimler AG’s Mercedes-Benz (DAIGn.DE), Fiat SpA (FIA.MI), Ford Motor Co (F.N), General Motors Co (GM.N) and Nissan Motor Co (7201.T).
Local carmaker Tata Motors Ltd (TAMO.NS) was handed the highest penalty of 13.46 billion rupees. The other Indian carmakers fined were Maruti Suzuki Ltd (MRTI.NS), Hindustan Motors Ltd (HMTR.NS) and Mahindra & Mahindra Ltd (MAHM.NS).
The CCI said it had launched its investigation in 2011 after receiving information that spare parts made by some companies in India were not freely available in the market, resulting in higher prices for the parts and repair and maintenance services.
It said it had asked the carmakers to rectify their anti-competitive behavior, which it said impacted 20 million customers.
Source: Reuters
