The Competition Commission of India (CCI) found the Hyundai Motor India Limited to be in contravention to some its provisions which resulted into Resale Price Maintenance in sale of passenger cars manufactured by it.
Such arrangements also included monitoring of the maximum permissible discount levels through a Discount Control Mechanism. Further, the commission found the Hyundai Motor India Limited (HMIL) to have contravened the provisions of Section 3(4)(a) read with Section 3(1) of the Act for mandating its dealers to use recommended lubricants/ oils and penalising them for use of non-recommended lubricants and oils.
The final order was passed today by the commission on informations filed by the dealers of HMIL viz. Fx Enterprise Solutions India Pvt. Ltd. and St. Antony’s Cars Pvt. Ltd.
Apart from issuing a cease and desist order against HMIL, CCI has imposed a penalty of Rs. 87 crore upon HMIL for the anti-competitive conduct. The penalty has been levied @ 0.3% of the average relevant turnover of HMIL of preceding three years. CCI noted in its order that for the purposes of determining the relevant turnover for the impugned infringement, revenue from sale of motor vehicles alone have been taken into account.