CCI drops case against Ford India, authorised dealer

Sanjay Kumar alleged that Ford India had abused its dominant position in the market of 'multi/sports utility vehicle'

Fair trade regulator CCI has rejected the allegation against Ford India that it abused dominant position in the market for 'multi/sport utility vehicles'.

"The issue of abuse of dominance by the Opposite Parties (Ford India and its authorised dealer Harpreet Motors Pvt Ltd) does not arise and no case of contravention of provisions... of the Act (Competition) is made out against them," the Commission Commission of India (CCI) said in an order dated September 12.

Consequently, the CCI has closed the case against Ford India and its dealer.

In a complaint, one Sanjay Kumar alleged that Ford India has abused its dominant position in the relevant market of 'multi/sports utility vehicle in India' by hiking the price of the vehicle.

Kumar had booked a Ford Ecosport 1.5 Litre Petrol Ambiente version car manufactured by Ford India in June last year by paying an initial deposit of Rs 50,000, from its authorised dealer Harpreet Motors. The car was to be delivered within five months of booking.

Subsequently, Kumar received a letter in December 2013 from Ford India stating therein to deliver the car before the end of February, 2014 and the price of the car will be revised in January, 2014 due to macro-economic factors and rising input costs.

Ford India accordingly revised the price of the said version of car to Rs 6.19 lakh in January, 2014 in place of Rs 5.59 lakh at the time of booking.

Citing Ford India's December letter, the CCI said "it is evident that the informant (Kumar), if so desired, could cancel the booking and the entire booking amount is to be refunded immediately after waving of the cancellation charges."

"In these circumstances, no case, whatsoever, is made out against any of the Opposite Parties and the issues projected by the Informant at best appear to be purely consumer /contractual dispute, remedies whereof lie elsewhere," the Commission said.