Competition is good but ethics are important, Competition Commission of India (CCI) has alleged 17 car manufacturers in India for practicing anti-competitive measures in India. CCI has found that these car makers are selling spare parts at higher prices to the consumers and has scheduled hearing for next month for seeking explanations on same from them. The show-cause notice has been issued by commission to alleged car makers, for not practicing a healthy competition. The name of the manufacturers has not been disclosed yet but it’s expected that some overseas manufacturers are also there in the list.
The final decision on the same will be taken after seeking explanations from car makers and considering Director General’s report. CCI filed a complaint last year that some of the manufacturers were making spare parts available only at their authorized dealers which in turn sell them at a higher rate. This results in many issues for the buyer as he has to pay more for spare parts or for-go his warranty when he chooses to opt for parts outside the authorized service centre.
Some manufacturers also charge prices based on the customer profile. Toyota for instance sells the Corolla Altis and Innova in the Indian market, pricing of both the cars being more or less the same. The Innova is a bigger car (in dimensions and engine capacity) but the service charges for the Innova is much lesser than the Corolla. The reason is that the Corolla is targeted towards private buyers, while the Innova is targeted more towards fleet operators.
Source – Business Line
