BackCompetition Commission dismisses complaint against 18 auto makers
It was alleged that the dealership agreements are completely one-sided and in favour of auto makers
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New Delhi: The Competition Commission of India has rejected allegations of unfair business practices made against 18 auto makers, including Tata Motors Ltd, Mahindra and Mahindra Ltd and Ford, regarding conditions put forward in their dealership agreements.
It was alleged that the dealership agreements between automobile manufacturers and authorised dealers are completely one-sided and in favour of auto makers. The complaint was filed against 18 entities, including Mahindra and Mahindra, Tata Motors, Honda Siel Cars India Ltd, Volkswagen India Pvt. Ltd, General Motors India Pvt. Ltd, Toyota Kirloskar Motor Pvt. Ltd, Ford India Pvt. Ltd, Renault India Pvt. Ltd and Hyundai Motor India Ltd.
Others include Ashok Leyland Ltd, Tractor and Farm Equipment Ltd, Piaggio Vehicles Pvt. Ltd, Bajaj Auto Ltd, Hero MotoCorp Ltd, Mahindra Two Wheelers Ltd, Honda Motorcycle & Scooter India Pvt. Ltd and TVS Motor Company Ltd. Rejecting the complaint, CCI said there is no prima-facie evidence of violation of competition norms.
The informant, Pondicherry-based K. Rajarajan, alleged that terms of the agreement entered into with Mahindra and Mahindra and Bajaj Auto were one-sided and loaded in favour of these two manufacturers only. In its order, dated 30 June and made public on Friday, CCI said the informant has not been able to even prima facie establish appreciable adverse effect on competition in the market with respect to the impugned terms and conditions contained in the letter of intent (LOI) or dealership agreements of the opposite parties.
“Essentially, the grievances of the informant appear to be monetary disputes for which informant has already initiated civil suits and arbitration proceedings before the appropriate authorities," it added.
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