Maruti Suzuki Stops Dealers From Giving Extra Discounts: CCI Probe

Maruti Suzuki India has reportedly been restricting its dealers from passing additional discounts to customers. CCI's (Competition Commission of India) investigation concluded that the company did so to discourage competition between distributors.

A recent investigation by the investigative arm of the Competition Commission of India (CCI) is reported to have found that Maruti Suzuki was preventing its dealers from passing on additional discounts to customers. Sources told IANS that the report, presented by the antitrust investigation wing, states that the country's largest automaker did so to deter competition among dealers.

The investigation also reportedly revealed that in this case, a dealer was found to pass additional discounts to its customers, more than what Maruti Suzuki India had stipulated, the company punished them. The Competition Commission of India is said to have ordered an investigation in 2019 after a Maruti Suzuki India dealer partner complained that the automaker was not allowing them to offer additional discounts to consumers.

As of now, the report presented by the Competition Commission of India investigation team is under final consideration by the antitrust authority. According to IANS, the competition commission of India will evaluate the report and accept or reject it later.

At the beginning of December 2020, Maruti Suzuki India announced that it will increase the prices of its cars from January 1, 2021. The company has cited an increase in the cost of inputs (the cost of raw materials) as the reason principal for the price increase.

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