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India Tackles Spare Parts Monoply After China's Example
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Following China, India starts to crack down on monopolistic price of major carmakers within the country. India's Anti-monopoly administration fines 14 (domestic and foreign) carmakers USD420 million for violating the regulation of market competition.
Fined companies include Volkswagen, Fiat, BMW, Ford, GM, Toyota, Honda, Mercedes-Benz, Nissan, Skoda, Suzuki, Hindustan Motors, Mahindra & Mahindra, and Tata Motors. The fine is rated at 2% of average annual income in the latest 3 years.
The announcement of India's crackdown is made a week after China fined 13 foreign carmakers USD450 million. The Indian government also investigated on Mercedes-Benz, Audi, and Chrysler suspected for illegally raising repair parts price, manipulating after-sales price, and man-made constraints on the rights to provide service in the region.