Competition Commission of India has slapped Hyundai India, the second largest car manufacturer in India, with a fine of Rs 87 crore for unfair trade practices.
CCI claims that the Korean manufacturer had made arrangements with its dealers to adhere to the resale price maintenance. This is a practice where the manufacturer and retailers agree that the retailers will not sell car below a specified price. This unfair practice also includes monitoring of the maximum permissible discount levels through a discount control mechanism. Matters, however, don´t just end there. CCI also found out that Hyundai has mandated all its dealers to use only those lubricants and oils recommended by them and even penalised dealers who used other brand oils and lubricants.
"We are studying the order in detail and will take necessary course of action to challenge the order at appropriate level to protect the interest of our customers and channel partners by abiding with all the laws of land," said Hyundai spokesperson in a statement.