The Competition Commission of India (CCI) has found Hyundai Motor India
Limited (HMIL) to be in contravention of the provisions of the competition Act,
2002 for forging arrangements with its dealers which resulted into Resale Price
Maintenance in sale of passenger cars manufactured by it.
Such arrangement also included monitoring of the maximum permissible
discount levels through a Discount Control Mechanism.
Further, HMIL was found to have contravened the provisions of the Act for
mandating its dealers to use recommended lubricants/ oils and penalizing them
for use of non-recommended lubricants and oils.
The final order has been passed on June 14 on information filed by the
dealers of HMIL viz. Fx Enterprise Solutions India Pvt. Ltd. and St. Antony’s
Cars Pvt. Ltd.
Apart from issuing a cease and desist order against HMIL, CCI has imposed a
penalty of Rs. 87 crore upon HMIL for the anti-competitive conduct. The penalty
has been levied @ 0.3% of the average relevant turnover of HMIL of preceding
CCI has noted that in its order for the purposes of determining the
relevant turnover for the impugned infringement, revenue from sale of motor
vehicles alone have been taken into account.