Hyundai India Fined Rs 87 Crore For Unfair Trade Practices
Hyundai India recently got into a trouble with Competitive Commission of India as they have fined INR 87 Crore to the Korean brand. They found that discounts were offered in a wrong manner, violating the rules regarding competitive practices among car manufacturers in India.
CCI has also directed Hyundai to end all such practices with immediate effect. Hyundai India will now have to keep all the discounts under check as its dealers could not offer more discounts than that are being directed by the company.
A recommended range of discounts is available with dealers and they have to follow the same in order to keep things under check from the company’s side. Competition Commission of India stated that “such conduct pertains to and emanates out of the sale of motor vehicles. Hence, for the purposes of determining the relevant turnover for this infringement, revenue from the sale of motor vehicles alone has to be taken into account”.
The fine amounts of 0.3 percent of Hyundai’s turnover. They even directed the brand to use recommended lubricants and oils in place of the ones being used at few dealerships. Hyundai will penalize its dealers on such practices and take care that this does not happen anytime again after this order. Many manufacturers have received fines from time to time after violating the rules that have been kept in place by various associations. Hyundai will challenge the decision in order to prove their part in this penalty case.