Auto stocks down after CCI penalty on 14 car makers including Tata Motors and Maruti Suzuki

MUMBAI: Auto stocks today witnessed selling pressure following the Competition Commission imposing a total penalty of Rs 2,545 crore on 14 car makers for violating trade norms in the spare parts and after services market.

All the stocks however narrowed their losses with Tata Motors, which had lost over 2 per cent in early trade, ending with a gain of 0.90 per cent.

Shares of Hindustan Motors fell by 2.38 per cent, Maruti Suzuki (0.96 pc) and Mahindra & Mahindra (0.45 pc) on the BSE. Intra-day they were down 2.77 per cent, 1.24 per cent and 1.23 per cent respectively.

In the first major order against auto players, the Competition Commission yesterday slapped a penalty of Rs 2,545 crore on 14 car makers, including Maruti Suzuki and Tata Motors, for violating trade norms in the spare parts and after services market.

Honda Siel Cars India, Volkswagen India, Fiat India Automobiles, BMW India, Ford India, General Motors India, Hindustan Motors, Mahindra & Mahindra, Mercedes-Benz India, Nissan Motor India, Skoda Auto India and Toyota Kirloskar Motor have also been penalised.

In a 215-page order, the Competition Commission of India ( CCI) has imposed a penalty totalling Rs 2,544.64 crore on the 14 car companies. For each entity, the individual fine amounts to two per cent of their average turnover.

The penalty is to be deposited within 60 days of receipt of the order.