CCI imposes Rs 200 cr penalty on Maruti over dealer discount policy: Report

India’s antitrust regulator has fined Maruti Suzuki, the country’s biggest carmaker, Rs 200 crore for anti-competitive practices related to how it forced dealers to discount cars, the watchdog said in an order on Monday, Reuters reported.

The Competition Commission of India (CCI) in 2019 started looking into allegations that Maruti forces its dealers to limit the discounts they offer, effectively stifling competition among them and harming consumers who could have benefited from lower prices if dealers operated freely, Reuters had reported.

In an order issued after an investigation, the CCI asked Maruti to “cease and desist” from indulging in such practices and asked the company to deposit the fine within 60 days.

Maruti, majority-owned by Japan’s Suzuki Motor Corp, did not immediately respond to a request for comment.

In June, Maruti Suzuki has announced a price hike for its entire lineup to come into effect in the third quarter of 2021 (July-September).

The carmaker has quoted the increase in various input costs over the past year, as the reason for the price hike. This is Maruti’s third price hike experienced in 2021, following the hikes in January where it was increased by upto Rs 34,000, and by one to six percent in April.

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