Maruti Suzuki India has reportedly prohibited its dealers from passing on additional discounts to customers. CCI’s investigation found that the company was doing this to deter competition between dealerships.
The investigation also found that if a dealership was found passing on additional discounts, Maruti Suzuki sanctioned them.
A recent investigation by the investigative arm of the Competition Commission of India (TCC) reportedly revealed that Maruti Suzuki had prevented its dealers from passing on additional discounts to customers. Sources told IANS that the report, submitted by the investigative wing of the anti-trust body, indicates that the country’s largest automaker has done this to deter competition between dealerships. We have reached out to Maruti Suzuki for an official statement on this matter, however, at the time of this story’s publication, our email has gone unanswered.
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According to some reports, the investigation also revealed that in the event a dealership was found giving additional discounts to its customers, more than what was stipulated by Maruti Suzuki India, the company penalized them. The Indian Competition Commission reportedly ordered the probe in 2019, after a partner dealer of Maruti Suzuki India complained that the automaker was not allowed to give additional discounts to consumers.
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From now on, the report submitted by the CCI investigative team is to be last reviewed by the anti-trust body. According to the IANS, CCI will conduct an evaluation of the report, which position it will accept or reject.
Earlier in December 2020, Maruti Suzuki India announced that it would increase the prices of its vehicles, with effects from January 1, 2021. The company cited an increase in the cost of inputs (cost of raw materials) as the main reason of the price a hike.
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