The Competition Commission of India (CCI) on Wednesday ordered an investigation into allegations that Tata Motors, the country’s top seller of trucks, abused its market position while supplying commercial vehicles to some of its dealers.
The case centres around allegations from two former Tata dealers who claimed the company dictated the terms around the quantity and type of vehicles it should stock, and also worked in concert with affiliate firms while advancing credit.
The CCI in its order said Tata Motors appears to have abused its dominant position and the case “requires an in-depth investigation”.
The practice by Tata Motors to “coerce its dealers to order the vehicles according to its own whims and fancies” is anti-competitive, the CCI said in its 45-page order.
The CCI’s investigation unit needs to submit the report within 60 days, but typically such probes last for months.
Before the CCI, Tata Motors — part of the $100-billion Tata Group — denied all allegations.