India’s competition regulator on Wednesday, May 5, ordered an investigation into allegations that Tata Motors, the country’s top seller of trucks, abused its market position while supplying commercial vehicles to some of its dealers.
The case centers around allegations from two former Tata dealers who alleged the company dictated terms around the quantity and type of vehicles it should stock, and also worked in concert with affiliate firms while advancing credit.
The Competition Commission of India (CCI) in its order stated Tata Motors appears to have abused its dominant position and the case “requires an in-depth investigation.”
The practice by Tata Motors to “coerce its dealers to order the vehicles according to its own whims and fancies” is anti-competitive, the CCI stated in its 45-page order.
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