The Competition Commission of India (CCI) on Tuesday reportedly imposed a penalty of Rs 420 crore on the Indian unit of leading South Korean automobile manufacturer Hyundai Motor for unfair trade practices.
The competition watchdog also found domestic manufacturers Mahindra Reva Electric Vehicles Pvt Ltd, which is a part of Mahindra Group, and Premier Ltd in violation of competitive practices. However, these two companies were not fined, Reuters reported citing a CCI statement.
According to an Economic Times report, the competition regulator found Hyundai Motor India Ltd (HMIL) guilty of indulging in anti-competitive practices as it did not make genuine spare parts freely available in the open market.
The fine was calculated at 2% of the HMIL's average turnover. The company has to deposit the penalty within two months, according to reports. CCI has also asked it to cease and desist from such practices.
"The car company was found to be indulging in practices resulting in denial of market access to independent repairers as the latter were debilitated to provide services in the aftermarket for repair and maintenance of cars for want of genuine spare parts," a CCI statement said.
The ET report says that the CCI has also directed HMIL not to impose a blanket condition that warranties would be cancelled if the consumer avails of services of any independent repairer.
The CCI order comes about a year after it imposed a penalty of over Rs 2,545 crore on 14 carmakers, excluding the three violators, for indulging in unfair practices in the spare parts market. According to reports, the competition watchdog had in August 2014 said that it would pass a separate order in respect of three car manufacturers -- HMIL, Reva and Premier.