CCI pulls up Maruti for controlling dealer discounts

According to a media report, Maruti Suzuki has come under the scanner of the Competition Commission of India (CCI) for anti-competitive practices by controlling dealer discounts.

The CCI has alleged that by limiting discounts Maruti Suzuki is stifling competition among its dealers. It is said that if dealers had been given a free hand, customers would have benefited from lower prices.

Reports suggest that Maruti Suzuki is not the only company that has been controlling dealer discounts. A similar case against Hyundai is currently pending in the Supreme Court of India. Carmakers adopt the strategy of limiting dealer discounts to avoid a price war between its dealers. It also safeguards the interest of smaller dealers.

The CCI had also cracked down on carmakers for manipulating prices of spare parts.

Source: Times Now