India's antitrust watchdog imposes $13.6 mn fine on Hyundai Motor's local unit
India's antitrust watchdog has imposed a fine of $13.6 million on South Korean automaker Hyundai Motor Co's local unit, accusing the company of anti-competitive behaviour.
Competition Commission of India (CCI), also known as India’s antitrust watchdog, on 14 June 2017 imposed a fine of Rs 870 million ($13.6 million) on automaker Hyundai Motor India Limited (HMIL). While imposing the fine, the antitrust watchdog accused the South Korean automaker of anti-competitive behaviour in its local unit in India.
In its order, the Competition Commission of India alleged that HMIL contravened competitive practices by imposing certain arrangements upon its dealers including monitoring the maximum permissible discount level and mandating the use of recommended lubricants and oils.
The anti-competition watchdog said, “The penalty has been levied at 0.3 percent of Hyundai Motor India's average relevant turnover of the preceding three years.”
"For the purposes of determining the relevant turnover for the impugned infringement, revenue from the sale of motor vehicles alone have been taken into account," the watchdog said, adding the final order was passed on the basis of information provided by the dealers.
Hyundai, in a late night statement, said they were surprised by the order and were looking into the matter. "We are studying the order in detail and will take the necessary course of action to challenge the order at an appropriate level to protect the interest of our customers and channel partners by abiding (by) all the laws of the land," Hyundai said.
($1 = 64.2300 Indian rupees)
Hyundai Motor India Limited
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC). HMIL is the largest passenger car exporter and the second largest car manufacturer in India. It currently has ten car models across segments – Eon, Grand i10, Elite i20, Active i20, Xcent, Verna, Creta, Elantra, Tucson and Santa Fe.
HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts advanced production, quality and testing capabilities.
HMIL forms a critical part of HMC’s global export hub. It currently exports to around 87 countries across Africa, Middle East, Latin America, Australia and the Asia Pacific. HMIL has been India’s number one exporter for the last 10 years consecutively. To support its growth and expansion plans, HMIL currently has 475 dealers and more than 1,226 service points across India. In its commitment to provide customers with cutting-edge global technology, Hyundai has a modern multi-million dollar R&D facility in Hyderabad.