Hyundai India hit with Rs 87 crore penalty

Hyundai India hit with Rs 87 crore penalty

15th Jun 2017 11:24 am

Competition Commission levies fine over "unfair practice of discount control" on its cars.

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The Competition Commission has found fault with Hyundai Motor India’s mechanism of providing discounts on its cars and has imposed a hefty fine of Rs 87 crore, according to the Press Trust of India. Hyundai has also been asked by the Commission to "end all such anti-competitive practices with immediate effect". In its written order, the Commission accused Hyundai of putting in place discount control and penalty mechanisms in order to maintain the resale value of its cars, whereby dealers are permitted only to provide a maximum permissible discount and not beyond the recommended range.

It stated that "such conduct pertains to and emanates out of the sale of motor vehicles. Hence, for the purposes of determining the relevant turnover for this infringement, revenue from the sale of motor vehicles alone has to be taken into account".

When responding about the issue to Autocar India, Hyundai stated, “We are really surprised with this order. We are studying the order in detail and will take the necessary course of action to challenge the order at an appropriate level to protect the interest of our customers and channel partners by abiding all the laws of the land.  

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