How Competition Law And CCI Affect Automobile Dealers - An Overview

Article by MM Sharma, Head Competition Law & Policy Practice, Vaish Associates, Advocates, New Delhi, India

MM Sharma**

Anand Sree***

The Indian automobile industry is the fourth largest in the world. It is the largest in the two and three-wheeler segment, second largest in the bus segment and the fourth largest in the passenger car segment, in terms of manufacturing volume.

Automobile dealers are a vital part of the automobile market supply chain and are the main point of contact for the end consumer. They also play a key role in the aftermarket, providing services such as supply of spare parts, maintenance and repairs of the vehicles, and other complimentary services like insurance and financing of vehicles. However, automobile dealerships are frequently subjected to unfair trading conditions by the Original Equipment Manufacturers ("OEM").