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Carmakers on a bumpy ride: Maruti, Tata Motors, M&M take a hit on CCI's penalty
Posted on 26th August 2014
NEW DELHI: Carmakers such as Tata Motors, M&M, and Maruti Suzuki-0.62 % plunged up to 2 per cent in trade on Tuesday, after the Competition Commission of India imposed a combined penalty of over Rs 2,500 crore on 14 carmakers for indulging in unfair practices in the spare parts market.

Tata Motors-0.73 % faces the maximum fine of Rs 1,346 crore, followed by Maruti Suzuki Rs 471 crore, Mahindra & Mahindra Rs 292 crore, General Motors Rs 85 crore, Honda Car India Rs 78 crore.

Reacting to the news, Tata Motors slipped as much as 2.1 per cent followed by M&M which dropped 1.23 per cent and Maruti Suzuki was down 1.19 per cent in trade today.

At 09:30 a.m.; Tata Motors was trading 1.4 per cent lower at Rs 500.95, Maruti Suzuki was down 0.56 per cent to Rs 2786.65 and M&M was trading 0.9 per cent lower at Rs 1393.45.

The decision, spelt out in a 215-page order, says that auto companies indulged in anti-competitive practices as they did not make genuine spare parts freely available in the open market, upholding the contentions of a petition filed by a complainant in 2011, ET reported.

The fine has been calculated at 2% of average turnover, added the report.

Honda Siel 1.60 %, Volkswagen India, Fiat India, BMW India, Ford India, General Motors, Hindustan Motors, Mercedes - Benz, Nissan Motors, Skoda Auto India and Toyota Kirloskar are the other companies on whom fines have been slapped.

Related Companies: Maruti Suzuki India Limited   Tata Motors   Mahindra India   

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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.

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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
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LIC pips private insurers in first-year premium growth during April-August
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Apollo Hospitals rules out further stake sale
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019
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