14 Carmakers In India Incur Fine Of Rs 2,544.65 Crore Collectively - Overdrive

14 carmakers in India incur fine of Rs 2,544.65 crore collectively

26 Aug 2014 / 22

As many as 14 automobile manufacturers in India have been charged fines that collectively come up to a whopping Rs 2,544.65 crore, thanks to the Competition Commission of India (CCI). The manufacturers including Tata Motors, Nissan, Honda, Hyundai, Maruti, Toyota, Fiat, Ford, General Motors, Skoda, HM, BMW, Mercedes-Benz and Mahindra & Mahindra have been charged with violating the Competition Act.

While Tata Motors owes the highest to the CCI at Rs 1,346.46 crore, others such as Toyota (Rs 93.38 crore) have been slapped with sizeable fines too. The OEMs were indicted with the illegal practice of not allowing sale of spare parts for their vehicles in the open market. These parts were only made available at authorised workshops leading to a scarcity. CCI also took note of manufacturers declaring the warranty void in the event of a vehicle being serviced at an unauthorised service centre.

The fines were imposed after warnings were issued to the manufacturers regarding the matter- on two occasions, the most recent of which was last year.

Original part

The CCI has instructed the manufacturers to make information about spare parts, their pricing, maintenance and warranty readily available to customers. Moreover, they’ve also been directed to cease cancelling warranties if customers use genuine spare parts purchased from stores other than authorised workshops.

Have you faced a similar situation with your automobile manufacturer? If yes, then let us know in the comments below.


To stay at the cutting edge of automotive news in India, follow Overdrive on Twitter (@odmag) or on Facebook (facebook.com/odmag). Or download our app from the iOS or Android app stores today.

Find your next car
Shubhabrata Marmar
23 Jun 2017
Income lax department
Should someone earning a living from a vehicle get priority at...
Bob Rupani
15 Jun 2017
The lal batti and VIP culture
The government has banned the ‘lal batti’ or red beacon...