In his complaint, one Arvind Sood accused HMIL of collecting booking amount for the Creta compact crossover through its dealers without supplying any information about the product, thereby abusing its dominant position in the market.
After examination, the Competition Commission of India has dismissed the complaint, reports PTI. To examine the complaint, CCI considered the ‘market of sports/multi utility vehicles’ to be relevant and noted that the consumers can choose from several car models in the said segment from several auto manufacturers.
CCI then concluded that Hyundai doesn’t appear to be in dominant position in the relevant market. The allegations of cartelisation by the automaker and its dealers was also dismissed. CCI further noted that:
The information is devoid of any merit as the same does not disclose any competition issue which can be examined within the ambit of section 3 or 4 of the (Competition) Act.
The section 3 deals with cartelisation while the section 4 is about abuse of dominant position. It may be recalled that Hyundai Creta bookings have crossed 54,000 units since bookings commenced in August 2015. HMIL has ramped up the production of the car to cater to the overwhelming demand.