The Competition Commission of India (CCI) has imposed a penalty of Rs 420 crore on leading automobile manufacturer Hyundai Motors for unfair trade practices.
The Competition Commission of India (CCI) has imposed a penalty of Rs 420 crore on leading automobile manufacturer Hyundai Motors for unfair trade practices. The competition regulator found Hyundai guilty of indulging in in anti-competitive practices as the company did not make genuine spare parts freely available in the open market. The fine has been calculated at 2% of average turnover. Hyundai has to deposit the penalty within 60 days. CCI has also asked the company to cease and desist from such practices.
The commission has also directed Hyundai not to impose a blanket condition that warranties would be cancelled if the consumer avails of services of any independent repairer. The wholesale distribution and supply chain solutions for Hyundai are currently being provided by MOBIS India (MIL). The after sales market for spare parts of Hyundai brand of cars is catered to by MIL, a subsidiary of Mobis Korea which is a part of the Hyundai group and is engaged in the distribution of spare parts in several countries.
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