The Competition Commission of India has ordered an investigation into allegations that Tata Motors, the country’s largest truck sales company, abused its market position by supplying commercial vehicles to some of its dealers.
Tata Motors is said to have stipulated terms on the number and types of cars that dealers must buy. The Competition Commission of India (CCI) ordered an antitrust investigation of Tata Motors’ commercial vehicle business. There are allegations that the largest commercial vehicle seller in the country abused its market position by providing resumes to some dealers.
According to the allegations by the company’s former dealer partner, Tata Motors stipulated terms on the number and types of vehicles they should buy and worked with related companies while increasing credit. An automotive spokesperson said: “We understand that the Competition Commission of India (CCI) has approved an order directing the Director-General of the Indian Automotive Industry to initiate an investigation into the commercial vehicle business of Tata Motors Limited ( TML) in India.
We Understand CCI Preliminary resolution order has been approved, and no final or binding opinion has been issued on the allegations against TML. TML is currently reviewing copies of the order that are available in the public domain and will consult its legal counsel to take the necessary action. CCI said, Tata Motors appears to have abused its dominant position, and the case “needs an in-depth investigation.”
According to the allegations, the order of the Competition Commission of India (CCI ) stated that Tata Motors appears to have abused its dominant position and the case requires an in-depth investigation. The competition regulator also mentioned in the order that Tata Motors forced its dealer partners to order vehicles based on their whims and fancies, which is anti-competitive.
The order also states that Tata Motors has rejected all of CCI’s previous allegations. The investigation team must submit a final report within 60 days, but historical records show that such investigations typically last several months. Today, Tata Motors occupies more than 40% of the market share in this segment, making it the largest seller of commercial vehicles in the United States. India.
The company offers a variety of trucks and buses in India and is mainly supplemented by companies such as Ashok Leyland, Mahindra, and Mahindra.