The Competition Commission today dismissed charges of abusing dominant market position with regard to dealership of cars against Hyundai Motor India.
The complaint against Hyundai was filed by Surat-based Nanavati Wheels which was appointed as a non-exclusive dealer of the company's vehicles at Surat in Gujarat.
Nanavati Wheels had alleged that Hyundai was abusing its market dominance by restraining it from taking the dealership of another car company as well.
Noting that the agreement with Hyundai did not contain a clause restraining Nanavati Wheels from taking dealership of other car manufacturers, the Competition Commission of India (CCI) in an order today said that "no prima facia case was made out of violation of...The (Competition) Act".
In the order, the Commission noted that Hyundai "was not dominant in the market of sale of cars in Surat region".
"Maruti Suzuki was having about 10 per cent more market share than the opposite party," CCI said.
"It is obvious that in dealership network also, Maruti Suzuki would have more spread in the region than that of opposite party and it cannot be said that in the market of providing dealership, opposite party was dominant," it added.
Besides, the fair trade regulator noted that Hyundai had filed a list of its 143 Hyundai dealers having dealership of other car manufacturers, a fact which was not refuted by Nanavati Wheels.
