Maruti Suzuki, the country’s largest car maker is being probed by the Competition Commission of India (CCI) for resorting to practices of controlling how discounts are offered by its dealers in the country.
This has been mentioned by unnamed sources in the report and a detailed investigation on the matter could do damage to the company via TheQuint.
The probe primarily states that Maruti Suzuki has been limiting the discounts that its dealers could offer on its range of cars. This is seen as anti-competitive conduct by the CCI and the source quoted in the story believes the company might have stifled competition among dealers, forcing them to limit discounts they offer on cars to consumers.
Hyundai was found guilty of similar charges in 2017, but with about 14 percent market share, the South Korean company managed to avoid paying a $12.5 million fine. The case is still pending after CCI challenged the ruling in the Supreme Court.
The report points out, quoting a source that allegations against the company have been going on for around 10 months, but it’s still not clear the around which period the investigation will take place.