Lamborghini Mumbai vs Exclusive Motors: CCI rejects complaint

Exclusive Motors Pvt. Ltd., Delhi, were the only authorized dealer for Lamborghini cars in India. But, rising number of complaints from Lamborghini owners in India,…

Exclusive Motors Pvt. Ltd., Delhi, were the only authorized dealer for Lamborghini cars in India. But, rising number of complaints from Lamborghini owners in India, pushed the sportscar manufacturer to open their second dealership in the country. In April 2012, Lamborghini Mumbai was launched. This dealership is owned by VW Group. Exclusive Motors believes that they are being offered Lamborghini cars at a higher price than Lamborghini Mumbai. This resulted in Exclusive filing a complaint against the VW Group.

Earlier this week, it was revealed that Competition Commission of India (CCI) has rejected the pliant filed by Exclusive Motors Pvt. Ltd against VW Group in India. According to complaint, Exclusive Motors was of the view that Lamborghini had abused its dominant market position as company’s sole importers by appointing their own group company, Volkswagen Group Sales Pvt. Ltd as exclusive importers of Lamborghini cars.

Lamborghini thereafter requested Exclusive Motors to terminate their existing dealership agreement and enter into a new one with Volkswagen India with revised terms of contract as the existing ones were not acceptable. Exclusive Motors were served a 12 month notice period of termination of contract. Exclusive Motors also contended that during this notice period, the opposite party was offering them products at a higher price than they were offering to Volkswagen India causing further anguish.

However, CCI has rejected this complaint taking a stand that since Automobili Lamborghini S P A is not dominant, there is no basis to direct DG to investigate this matter further. CCI has further reiterated that Lamborghini has a right to appoint its own group company to import their products into the country and even has the right to open its own office and import cars directly as well.