Competition Comm dismisses complaint against 18 auto makers

Competition Commission has rejected allegations of unfair business practices made against 18 auto makers, including Tata Motors, Mahindra & Mahindra and Ford, with respect to conditions put forward in their dealership agreements.

It was alleged that dealership agreements between automobile manufacturers and authorised dealers are completely one-sided and in favour of auto makers.

The complaint was filed against 18 entities, including Mahindra & Mahindra, Tata Motors, Honda Siel Cars India, Volkswagen India, General Motors India, Toyota Kirloskar Motor, Ford India, Renault India and Hyundai Motor India.

Others include Ashok Leyland, Tractor and Farm Equipment, Piaggio Vehicles, Bajaj Auto, Hero MotoCorp, Mahindra Two Wheeler, Honda Motorcycle & Scooter India and TVS Motor Co. Rejecting the complaint, Competition Commission of India (CCI) said there is no prima-facie evidence of violation of competition norms.

The informant, Pondicherry-based K Rajarajan, alleged that terms of the agreement entered into with Mahindra & Mahindra and Bajaj Auto were one-sided and loaded in favour of these two manufacturers only.

In its order, dated June 30 and made public on Friday, CCI said the informant has not been able to even prima facie establish appreciable adverse effect on competition in the market with respect to the impugned terms and conditions contained in the Letter of Intent (LOI) or dealership agreements of the opposite parties.

"Essentially, the grievances of the informant appear to be monetary disputes for which informant has already initiated civil suits and arbitration proceedings before the appropriate authorities," it added.