Tata Motors Passenger Vehicles Ltd.

Competition Commission of India (CCI) has levied a penalty of Rs 2,544.65 crore on Tata Motors and 13 other car manufacturers for indulging in unfair practices in the spare parts market. The CCI's hefty penalty came after it found that these car makers have restrictive practices that prevent independent repairers coming into the market. For each entity, the individual fine amounts to two per cent of their average turnover. The penalty is to be deposited within 60 days of receipt of the order. Among all, Tata Motors suffered the highest penalty of Rs 1,346.46 crore as CCI clubbed JLR revenues with Tata Motors while arriving at the penalty.

The commission found that the conduct of the car companies was in violation of the provisions of section 3(4) of the Act with respect to its agreements with local original equipment suppliers (OESs) and agreements with authorized dealers whereby it imposed absolute restrictive covenants and completely foreclosed the after-market for supply of spare parts and other diagnostic tools.

Tata Motors is India's largest automobile company, is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fourth largest truck and bus manufacturer.