Some former dealer partners of the company have alleged that the company abused its market position and dictated the terms regarding the number and type of vehicles they should stock and also worked together with affiliate firms while advancing credit. The CCI views this as anti-competitive.
Tata Motors is facing an investigation ordered by the Competition Commission of India (CCI). The company faces allegations that it abused its market position while supplying commercial vehicles to some of its dealers.
Tata Motors is India’s leading company when it comes to the sale of commercial vehicles. It has a market share of more than 40%. Some former dealer partners of the company have alleged that the company abused its market position and dictated the terms regarding the number and type of vehicles they should stock and also worked together with affiliate firms while advancing credit. The CCI views this as anti-competitive.
The CCI order states that Tata Motors the case required an in-depth investigation. The report needs to be prepared and submitted within 60 days.
Tata Motors has denied the allegations. The company has stated that it plans to consult its legal counsels after reviewing the copy of the order which is available in the public domain. It will take the necessary steps later.
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