Mrtpc Opposes Discounts, Easy Loans By Car Cos

The Monopolies and Restrictive Trade Practices Commission (MRPTC) has objected to the various dealer discounts and low interest finance schemes offered by various auto manufacturers to boost sales.

Several auto finance companies were offering low interest finance schemes to buyers, with the auto companies in turn offering the cars to the finance companies to make good the interest differential. The auto companies were also offering several dealer discount schemes to boost sales. MRTPC, top industry sources said felt the discounts should be offered directly to all consumers.

In a letter to various auto makers issued recently, MRTPC has directed the companies to furnish certified copies of all advertisements issued by the automobile manufacturers with regard to finance schemes launched to finance vehicles through any party at discounted rates of interest to customers during the last three years.

 

``In case of the impunged finance schemes having been launched by authorised dealers, furnish the names and addresses of these dealers, clarifying whether the same have been launched with or with out your consent\approval, the letter added.

The MRTPC notice has further sought information on whether the company in turn had agreed to compensate the difference in rates of interest being charged by the finance companies in any manner during the impugned scheme of financing launched in the last three years.

In case of the auto manufacturer agreeing to compensate the finance company, MRTPC has directed former to disclose details along with the copy of the agreements reached between the manufacturers and the finance companies.

MRTPC has also sought details of passenger cars proposed to be sold or marketed through the said finance companies and the number of cars actually sold during the impunged finance scheme, ``information should be furnished in respect of cash schemes launched in the last three years, the notice added.

The Commission has directed the auto manufacturers to furnish details of incentives provided by dealers in case customers have opted to purchase vehicles without availing loan facilities during the impunged finance schemes.

MRTPC has also sought all information in respect of each scheme launched by fiance companies, or dealers, or any other party has provided loan at a discounted rate of interest to customers of vehicles.

Meanwhile, the passenger car sales in January took a further dip with possible customers delaying purchases in the post auto expo scenario. ``January is a bad month and sales are genarally low, however with all the new models on display people are postponing purchases and waiting for the new models to be launched. Even in the two wheeler segment sales have dipped, analysts said. ``There is a great deal of enthusiasm for Telcos Mint, people are waiting for the car to be launched as a 1400 cc, diesel at that price, seems almost too good to be true, the analysts said.

General Motors India sold around 300 Opel Astras in January, while Mahindra Fords Escort whole sales were around 276 units down from 354 in December. The companys retail sales in January however was around 400 units. Daewoo sales rose to 906 units in January from 314 in December, following the drastic cut in prices announced earlier.