CCI imposes Rs 87 crore on Hyundai Motor India for unfair business practices

HMIL also instructed its dealers to use recommended lubricants/ oils and penalised them if they didn’t.

The Dollar Business Bureau 

The Competition Commission of India (CCI) has found Hyundai Motor India Limited (HMIL) for imposing arrangements upon its dealers which resulted in the inclusion of Resale Price Maintenance in the sale of passenger cars manufactured by  it. The arrangements also included monitoring of the maximum permissible discount levels through a Discount Control Mechanism. Further, HMIL was found to have instructed its dealers to use recommended lubricants/ oils and penalising them for use of non-recommended lubricants and oils. 

The CCI has passed the final order after examining the information filed by the dealers of HMIL, Fx Enterprise Solutions India Pvt. Ltd. and St. Antony’s Cars Pvt. Ltd. 

Apart from issuing a cease and desist order against HMIL, CCI has imposed a penalty of Rs. 87 crores for its anti-competitive conduct. The penalty has been levied @ 0.3% of the average relevant turnover of HMIL of its preceding three years. CCI noted in its order that for the purposes of determining the relevant turnover for the impugned infringement, revenue from the sale of motor vehicles alone have been taken into account.

The Dollar Business Bureau - Jun 15, 2017 12:00 IST