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Old 27th June 2012, 15:29   #46
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Default Re: Car companies restricting spares sales - Report from Times of India

Very welcome move by CCI. Restricting supply in the market is anti-competitive. I sincerely wish for a serious fine to be imposed on all auto companies, like they did to the cement manufacturers.

I really wish these companies figure out that Maruti maintains its stranglehold on the Indian market largely thanks to its policy on fostering an open market in terms of spares and service. A free market and competition will raise the overall (read, average) quality of the players in the market.

I own a Ford, and I am so looking forward to being able to buy spares on the open market and using my Friendly Neighbourhood Garage!
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Old 27th June 2012, 16:07   #47
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Default Re: Car companies restricting spares sales - Report from Times of India

Excellent move by CCI, its high time car manufacturers in India follow the line that they so willingly do elsewhere in the world. When MSIL can do it so can everyone else.

BTW as rightly said before the statement from Toyota is only worth going into garbage and possible they should be the first one to be slapped fine.
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Old 27th June 2012, 16:51   #48
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Default Re: Car companies restricting spares sales - Report from Times of India

Great move by CCI. I hope it is implemented soon. We will see the price of spares coming down from the current astronomical levels.
If you notice now, most of the manufacturers are even vary of openly sharing the price list for spares. Why the secrecy?
It will help consumers to make an informed decision if they had the comparison of spares of parallel car models.

Toyota had the cheek to reply even before the official report was out, why of all the world?
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Old 27th June 2012, 16:57   #49
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Default Re: Car companies restricting spares sales - Report from Times of India

I was overwhelmed to see this news piece today morning & I sincerely hope that the court orders these auto companies to start providing their spare parts in the open market.

The reasoning about authorized/trained mechanics/individuals not doing the job, well, that could hold some substance but it can only be held as a condition during the warranty period. What about the people whose cars are now out of warranty & they do not want to go to the authorized centers for any sort of repairs?
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Old 27th June 2012, 17:01   #50
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Default Re: Car companies restricting spares sales - Report from Times of India

I have been thinking about this issue since my last post an hour or so back.

Mods: Please merge posts if you think necessary.

In the era of HM-PAL-Standard, the "bad old days", all spares for all cars were actually available over the counter. Officially. I remember buying genuine Ambassador and Padmini spares from shops around JC Road. So we had plenty of choice of where to get our cars serviced but little choice in terms of which car to buy.

Now, in the era of plentiful choice in terms of which car to buy, we have no choice but to go to A.S.S.? The only reason this is happening is companies & dealers are protecting their revenue stream at the expense of customers.

Last edited by KiloAlpha : 27th June 2012 at 17:03. Reason: grammatical errors
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Old 27th June 2012, 17:33   #51
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Default Re: Car companies restricting spares sales - Report from Times of India

Quote:
Originally Posted by adityasiera View Post
I initially thought only the Americans were up to it. But got a shocker when i inquired about fitting fog lamps on my Brio, Honda A S S quoted 18k (you kidding me ??). And now the CCI has taken up notice, hope they buckle up and get their act straight.
Toyota A S S quoted 25k for fitting fog lamps on my innova....I had to live without fogs till now. Lets hope CCI doesn't become a silent like many other bodies in our country
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Old 27th June 2012, 18:54   #52
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Default Re: Car companies restricting spares sales - Report from Times of India

Leave about the spares some companies don't even sell paint on the counter.
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Old 27th June 2012, 20:01   #53
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Default Re: Car companies restricting spares sales - Report from Times of India

I think that the gentleman from Toyota meant that only authorized service staff is allowed to goof up. I don't think he has a clue re what is going on in some of these so called "authorized service centers". He should read some of the stories on this site. Service quality being offered by some of the auto companies is just plain atrocious. What does he have to say for them?
I hope that in the spirit of fairplay () these companies should offer their parts through the open market.

One more point - by restricting the availability in the open market and charging exorbitant prices at the dealerships, the car companies are doing exactly the opposite of what they are claiming they want to avoid. They are creating a need for cheaper product which will be filled in by the after market parts manufacturers who may or may not adhere to the safety standards leading to disastrous decision making..!
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Old 27th June 2012, 20:56   #54
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Default Re: Car companies restricting spares sales - Report from Times of India

Just trying to understand what CCI may or may not be able to do:

If manufacturer-A refuses to sell spares over the counter or supply to independent shops/centres, it doesn't prevent manufacturer-B from doing the opposite. They are not all selling the same products either (I mean not like cement or oil companies), but selling products differentiated based on size, price, features etc. So, we cannot say that there is cartelization in the industry.

Second, if somebody wants to sell spares, there is a way - become an authorized dealer. Yes, I know it involves crores of investment and not everybody can become one. But, there is a cost for entering any business. Even if the cost is reduced by half or a third or quarter, there will still be a majority who cannot enter the business. Does the mean the business is restrictive? I'm not sure.

Third, from customer point of view, restricting the spare parts availability only to authorized centres reduces access to the spares. Here again, the same manufacturer often has more than one A.S.C in major cities - so there is some amount of choice for the customer. Also it can be argued by the manufacturers that it is better for the customers to stick to authorized centres for spares. If everyone starts stocking spares, how can the customer be sure if the part he is buying from shop-X is genuine or not?

So based on the above, what action can CCI realistically take? Or what are the errors in my understanding of the issue?
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Old 27th June 2012, 22:00   #55
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Default Re: Car companies restricting spares sales - Report from Times of India

What is the issue manufacturers have with selling spares OTC? Improper fitment and lack of training? There are mechanics outside who can outclass the authorised outlets. Give them a chance and they will show you their skill. Better than a bunch of folks who just swap parts between cars, determine what is faulty and replace the entire part at an exorbitant cost. Technically, because of a blown electronic component costing a few bucks, you end up paying thousands or more. Take the car to a reputed garage, and you are given various options by the mechanic, right from repairing the part till replacing it with a new one.

Let them sell spares, but not offer any warranty. Then it will be left to the customer to take sides. I change oil every 5k kms. However, the MASS charges for complete service. So, I have access to genuine spares near my house. Job done in a fraction of cost. At least running parts and consumables must be sold OTC. That will prevent people from choosing other options, which is a much serious issue IMO.
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Old 27th June 2012, 22:59   #56
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Default Re: Car companies restricting spares sales - Report from Times of India

This is a long pending issue that are pending from the Automobile Industry.
Its simple monopoly market that they are chasing for with handful of amount of people. Do the company think that a bulb/engine oil change also cant be done with the outside mechanics
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Old 27th June 2012, 23:16   #57
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Default Re: Car companies restricting spares sales - Report from Times of India

Quote:
Originally Posted by StarrySky View Post
Just trying to understand what CCI may or may not be able to do:
same manufacturer often has more than one A.S.C in major cities - so there customer be sure if the part he is buying from shop-X is genuine or not?

So based on the above, what action can CCI realistically take? Or what are the errors in my understanding of the issue?

ASC services are priced per guidelines from the vehicle manufacturers as are spare parts sold by the ASCs'.

This restricts competition and fosters monopolies/monopolistic behavior to the dis-advantage of the consumer. CCI has the mandate to restrict such business practices and have a valid case to start prosecution as per prevailing law.
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Old 28th June 2012, 01:34   #58
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Default Re: Car companies restricting spares sales - Report from Times of India

Good move CCI!

What Mr. Viswanathan says is complete non-sense. We don't live in country where safety aspects would have to be regulated. Someone who throws in lakhs of rupees, would also be knowledge-able enough to know that servicing roadside is risky.

I always felt that Hondas, Fords and few likes had way high cost of ownership and people take due to the value they see in it. I vaguely remember a distant relative's quote.. "Price levels of spares tell you more about the vehicle's overall cost than anything else!"
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Old 28th June 2012, 09:00   #59
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Default Re: Car companies restricting spares sales - Report from Times of India

1) I am in favor of OTC sales of spares. Having suffered for spare parts of Baleno, my bike and even old 800, Zen, etc., the only way to get the car fixed by local mechanic who manages to get genuine parts. There is one Bosch Service center near one Maruti dealer. I had visited him for Baleno right ORVM ( which is stolen ) and he told me that he can get parts from company. That was very nice to my years.
Kiran Motors took 1 year to get lower arm for Baleno, this guy can fetch it 3-4 days by paying more for courier. That is really nice.

2) From my observation, those who are not doing really big numbers in Indian market ( combining all segments the manufacturer is present in ) are in favor of restricting spares sales. MM, TATA, Maruti are all big players in one way or other in the domestic market.

3) I wont entirely disagree with Mr. Viswanathan. There are more not-so-knowledgeable mechanics than competent ones. What if parts are installed in a wrong/improper manner ? At the same time, Mr. Viswanathan is not entirely correct. Parts like Air filter, Oil filter, consumables, etc. must be made available.

Indian market is a tough one for sure...

Last edited by aaggoswami : 28th June 2012 at 09:01.
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Old 28th June 2012, 09:42   #60
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Default Re: Car companies restricting spares sales - Report from Times of India

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Originally Posted by vikram_d View Post
This statement is absolute BS. I hope the cases are levied and parts are available in the open market.
BS^infinity

"Only accredited people should be allowed to fix parts " - independent technicians do a way way better job than the so called "trained" ones.

I have been cursing Toyota ever since I got my Corolla ; no genuine parts in the open market

a few examples of parts that I sourced
  1. two headlamp bulbs from the Philips authorised stockist here
  2. 1 liter Toyota Genuine Coolant and 1 liter T-IV AT oil from UAE
  3. tappet cover gasket and engine mounts from Mumbai
  4. compressor clutch and pulley thro' a second hand parts dealer here from Kurla

Last edited by vigsom : 28th June 2012 at 09:45. Reason: addition
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