Non-life insurance companies, like Cholamandalam MS General Insurance are very pleased with the decision made by the Competition Commission of India (CCI) to fine 14 car manufacturers for monopoly of spare parts.
Insurance companies say that the restrictive practices of spares by automakers was expensive for the vehicle owners as well as to the insurers.
On the 25th of August, CCI had fined 14 car manufacturers a fine of amount INR 2,544.65 crore. They were fined when CCI came to know that they were restricting the sales of spares and violating the competition law.
Top manufacturers who were affected were Tata Motors, with the highest fine of INR 1,346.46 crore, followed by Maruti Suzuki, who were fined INR 471.14 crore, then followed by Mahindra, with INR 292.25 crore and then General Motors, with INR 84.58 crore.
Honda, Volkswagen, Fiat, BMW, Ford, Hindustan Motors, Mercedes Benz, Nissan Motor, Skoda and Toyota were the others carmakers who were fined by the CCI.
Gopalarathnam, Managing Director of Cholamandalam MS General Insurance says that the days where nicks and dents could be tinkered out are gone. He says car owners are forced to change an entire part and car companies have overpriced their spares.
Manufacturers abroad only replace parts that are damaged whereas in India, customers are forced to change the entire assembly, complain insurance company officials.
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