CCI To Start Investigation On Volkswagen, Honda And Hyundai

Three dazzling names in the world of automobiles Hyundai, Honda and Volkswagen are going through some embarrassing moments as the competition watchdog CCI has bought these three names under the scanning for misusing their prominent market position and selling auto parts to customers at high prices. (CCI) Competition Commission of India has ordered an investigation on the companies to its Director General (Investigations). He will look into the complaints filed by the consumers against the car manufacturers.

The companies are reported to be misusing their dominant position in market by selling the auto parts through their authorized dealers which in turn charge very high prices from the end consumers. An official has said that the international auto majors have misused their superior position in market because of which the consumers are not getting the supply of parts at reasonable price as they have no other choice but to buy the products at much high prices. The official also said that the case will soon be looked after by the organization.

A time duration of 45 days is given to the DG for submitting the final reports on the issue. For now, Hyundai Motors have said that no information has been received by the company from the CCI, whereas Volkswagen and Honda have not responded to the question. Usually the availability of the spare parts in Indian auto market is not limited to the authorized dealers of the company but in case of these three auto giants the spare parts are sold at higher prices by the company’s dealers. The customers which have brought a car from these auto giants have filed a complaint against this unfair means of pricing under Competition Act, 2002. The Commission at present have the authority of keep a track on anti-competitive agreements and checking it then.

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