Hyundai slapped with US$13.5m fine in India
[THE INVESTOR] India’s antitrust watchdog on June 15 fined Hyundai Motor India 870 million rupees (US$13.45 million) for violating the country’s competition laws.
The Competition Commission of India imposed the penalty against the Korean automaker’s Indian unit for controlling car prices by restricting maximum discounts, as well as recommending lubricants and oils to dealers, and levying penalties for not using them.
The fine amounts to 0.3 percent of Hyundai Motor India’s average “relevant turnover” over the last three financial years, according to the watchdog.
“For the purposes of determining the relevant turnover for impugned infringement, revenue from sale of motor vehicles alone have been taken into account,” the CCI said.
Hyundai Motor India expressed discomfort at the decision and said it would take follow-up measures.
“We are studying the order in detail and will take necessary action to challenge it at appropriate levels to protect the interest of our customers and channel partners abiding (by) all the laws of land,” Hyundai said in a statement.
Hyundai Motor India has 60 days to pay the fine.
The decision comes at a time when Hyundai Motor Group -- comprising Hyundai Motor and Kia Motors -- is expanding its presence in India, one of the fast-growing auto markets in the world.
Hyundai’s smaller sibling Kia announced it will invest US$1.1 billion to build the first Indian plant in the Andhra Pradesh state with an annual capacity of 300,000 units. It plans to start producing the cars in the second half of 2019.
Once completed, the auto giant will roll out 950,000 units annually, when adding Hyundai’s 650,000 annual production at its two existing plants in the country.
By Ahn Sung-mi (email@example.com)