On 23 August, The Competition Commission of India (CCI) the antitrust regulator imposed a fine of Rs 200 crore on the country’s biggest carmaker Maruti Suzuki India for anti-competitive practices related to how it forced dealers to discount cars, as per a Reuters report.
According to the Reuters report, the CCI was probing allegations that Maruti forces its dealers to limit the discounts they offer, effectively stifling competition among them and harming consumers who could have benefited from lower prices if dealers operated freely.
The CCI had launched an investigation into the allegations in 2019. An order based on the investigation was released on August 23, in which the CCI directed Maruti to “cease and desist” from indulging in such practices and asked the company to deposit the fine within 60 days. Maruti, majority-owned by Japan’s Suzuki Motor Corp, did not immediately respond to a request for comment.
In June, Maruti Suzuki has announced a price hike for its entire lineup to come into effect in the third quarter of 2021 (July-September). The carmaker has quoted the increase in various input costs over the past year, as the reason for the price hike. This is Maruti’s third price hike experienced in 2021, following the hikes in January where it was increased by up to Rs 34,000, and by one to six per cent in April.
