ACMA says CCI order will help create open market

Auto component manufacturers' body ACMA today welcomed CCI's order on automobile spare parts, saying it is critical to create an open market to benefit end consumer as the number of vehicles in India increases.
"As the vehicle parc in the country grows, it is critical to create an open market which is in the best interest of the end consumer," Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta said in a statement.
Stating that regulatory frameworks have been established in Europe and in pats of US regarding the issue, he said: "The aftermarket in India is plagued with counterfeit and spurious components; allowing larger number of organised players in the market will not only improve the product offering but will also enrich the customer experience of vehicle ownership, thus positively impacting the overall image of the automotive industry."

On August 25, 2014 the Competition Commission of India (CCI) had issued an order on regarding trade practices of select OEMs covering aspects, including procurement and sale of spare parts from component manufacturers and after sales service.
The CCI had slapped a penalty of Rs 2,545 crore on 14 car makers, including Maruti Suzuki and Tata Motors, for violating trade norms in the spare parts and after services market.
Maruti, Tata Motors and Mahindra had said they would challenge the order. On Wednesday the Delhi High Court put on hold the CCI order imposing a fine on Maruti Suzuki India.

Mehta, however, said as "the aftermarket in India is fast growing and with increased technical complexity of vehicles, the players in the market need to be endowed with skills, technical tools and high quality genuine parts that will help them service their customers appropriately.