The Society of Indian Automobile Manufacturers (SIAM) today lashed out at the recent CCI order imposing a penalty of Rs 2,545 crore on 14 car companies over availability of spare parts in the aftermarket saying it “completely ignored” the safety of consumers.
SIAM also said the instance showed how government departments work in isolation with narrow mandates.
Addressing the annual convention of Automotive Component Manufacturers Association of India, SIAM President Vikram Kirloskar said: “the safety of consumers has been completely ignored by the CCI” as the current structure of spare parts in the aftermarket is “just not structured” in terms of ensuring consumer safety.
Kirloskar further said the Competition Commission of India (CCI) order is also a “demonstration of government departments working in isolation” and each “working on narrow mandates’’.
He said at present India does not have any norms and quality standards for setting up independent auto repair garages.
He further said it was also premature to talk European style of norms for spare parts in the aftermarket in India as the requisite safety standards were not in place.
“If we put cart before the horse, we will be severely compromising the safety of consumers,” Kirloskar said.
Last month, the CCI had slapped a total penalty of Rs 2,545 crore on 14 car makers, including Maruti Suzuki, Tata Motors and Mahindra & Mahindra, for violating trade norms in the spare parts and after services market.
While the Delhi High Court has already put on hold the CCI order imposing a fine on Maruti Suzuki, Tata Motors and M&M have said they would challenge the order.