Hyundai is fined Rs.87 crores for providing discounts on its cars which CCI has found it violating the fair business practices. It was also instructed to cease and desist from such anti-competitive prices.
In a strongly worded 44 page order, the CCI noted “Such conduct pertains to and emanates out of sale of motor vehicles. Hence, for the purposes of determining the relevant turnover for this infringement, revenue from sale of motor vehicles alone has to be taken into account.”
The Penalty of Rs.87 crores translates to 0.3 per cent of the company’s average relevant turnover in the last three financial years from 2013-14.
CCI also noted that Hyundai had mandated its dealers to use “recommended lubricants/ oils and penalising them for use of non-recommended lubricants and oils”.
“Final order was passed today on informations filed by HMIL dealers viz. Fx Enterprise Solutions India Pvt. Ltd & St. Antony’s Cars Pvt. Ltd,” Ministry of Finance said in a tweet reacting to the order.
Hyundai is the leading passenger car producer and exporter from India and has its manufacturing plant in Sriperumbudur which is in the outskirts of Chennai.