Hyundai fined Rs. 420.26 crore by Competition Commission

In August 2014, we had reported that the Competition Commission of India (CCI) has imposed a fine amounting to Rs. 2,544.64 crore on fourteen car manufacturers for unfair practices in the spare parts market (click here to read report). Hyundai had obtained a stay on the order from the Madras High Court.

Now, after the findings of the Director General in the investigations and detailed submissions by Hyundai, the CCI has found the Korean company guilty of restricting the sale of genuine spare parts and diagnostic tools in the open market, making it expensive for customers to service and repair their vehicles. The Commission and imposed a fine of Rs. 420.26 crore on the company. It has asked Hyundai to deposit the penalty within 60 days from the date of the order.

Reva and Premier had filed applications requesting the CCI to strike their names of the array of parties. However, post the investigation, the Commission has found the two companies guilty of anti-competitive practices as well. It has asked the two manufacturers to stop and refrain from such practices. The Commission could not levy monetary fines on the two manufacturers due to mitigation factors working in their favour.

The CCI has ordered car manufacturers to not put any restrictions or impediments on the operation of independent repairers / garages.