New Delhi — The Competition Commission of India (CCI) has found Hyundai Motor India Limited to be in contravention of the provisions of Section 3(4)(e) read with Section 3(1) of the Competition Act, 2002, for imposing arrangements upon its dealers which resulted in resale price maintenance in sale of passenger cars manufactured by it. Interestingly, the order is based on the statements of two of the dealers of the carmaker.
The Korean carmaker’s “arrangements” also included, the government alleges, monitoring of the maximum permissible discount levels through a discount control mechanism.
Further, Hyundai Motor was found to have contravened the provisions of Section 3(4)(a) read with Section 3(1) of the Act for mandating its dealers to use recommended lubricants or oils and penalising them for use of non-recommended lubricants and oils — according to the government.
The final order has been passed today based on information filed by the dealers of Hyundai Motor namely Fx Enterprise Solutions India Pvt Ltd and St Antony’s Cars Pvt Ltd. Fx Enterprise Solutions India Private Limited is a Private incorporated on 11 February 1997. It is classified as a non-government company and is registered with the Registrar of Companies, Delhi. St Antony’s Cars Private Limited is a Private incorporated on 11 March 2008. It is classified as a non-government company and is registered with the Registrar of Companies, Ernakulam.
Apart from issuing a cease and desist order against HMIL, the CCI has imposed a penalty of Rs 87 crore upon HMIL for its anti-competitive conduct. The penalty has been levied at the rate of 0.3% of the average relevant turnover of HMIL of 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.
A copy of the CCI’s order passed in case numbers 36 and 82 of 2014 has been uploaded on the website of CCI here.