Carmakers on a bumpy ride: Maruti, Tata Motors, M&M take a hit on CCI's penalty

NEW DELHI: Carmakers such as Tata Motors, M&M, and Maruti Suzuki 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 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, 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.