Ford, Nissan And Toyota Penalised For Unfair Trade Practices In Spare Parts Market

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The competition appellate tribunal Compat discarded the appeal of Ford, Nissan and Toyota after they were found guilty of unfair practices in the Indian spare parts market.

The compat pronounced its oral order and stated that these three automakers have been penalised two percent of their overall turnover in the spare parts market and it has given directions to the fair playing field in the after sales market.

Compat has directed the three automobile manufacturers to remove all kinds of restrictions on the supply of spare parts, ensure there are no limitations for independent repairers and also provide MRP's of spare parts on their respective websites.

Apart from that compat wants the Ministry of Road & Transport to ensure the standardisation of automobile spare parts. Advocate Vaibhav Gaggar appeared on behalf of CCI.

Gaggar said, "The judgement should go a long way in bringing about transparency, accessibility and fairness in the auto mobile spare parts sector. This in turn would provide greater competition in the market and significantly promote the interests of consumers."

Back in 2014 CCI had found 14 automakers including Maruti Suzuki, Mahindra & Mahindra and Tata Motors guilty for practicing unfair methods in the spare parts market and had penalised them with a hefty amount of Rs 2,545 crore.

Ford, Nissan and Toyota raised an appeal against such move at the compat, whereas other companies chose to appeal in at the High Court.

This case dates back to 2011 when a petition at the CCI had alleged automakers are imposing restrictions in the operation of various authorised workshops and service stations which are selling spare parts.

Read more on: #auto news
Story first published: Saturday, December 10, 2016, 14:02 [IST]
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