[pixantz]

The only thing needed to be controlled here is the price factor of spares. There should be strict guidelines regarding proper and adequate distribution of spares into the market and at proper rates regulated regularly. Also, I think that manufacturers should be allowed to restrict only spares needed for critical parts like engine, transmission/drivetrain, as these are best fit at the ASC with proper tools and systems. As we know our FNGs are mostly hammer and tongs people and that's not proper for the newer more complex machines. So in the interest of the consumer enjoying better and full potential of their product, the manufacturers should ideally do the critical stuff, again, needing control on cost factors by government. But we should also ask ourselves in the first place, does the government really care?

[nitinbose]

This is definitely a good move, if its done with real seriousness and not just another eye wash. I did like the statement which mentions warranty should not be simply denied if the owner opts for third-party service.

The challenge with the dealers is that even if we're ready to purchase the spare(s), its likely not to be available and customers are kept indefinitely waiting for the spares while the car remains dusty in their yard, totally neglected!

[blr]

Originally Posted by nitinbose

The challenge with the dealers is that even if we're ready to purchase the spare(s), its likely not to be available and customers are kept indefinitely waiting for the spares while the car remains dusty in their yard, totally neglected!

That is the sad part! The dealers won't even have stock of even the most basic parts and the process to procure new one is pretty long. Guess even the manufacturer could be short on these spares (parts allocated to spares inventory) and the existing customers are ignored. They are mainly focused on getting new ones.

Hope rulings like these will slowly tap these people (not just auto industry, every field in India) out of their lethargic attitude.

[crackparag]

To sum it up:

An informant had approached the Competition Commission of India (“CCI”) alleging anti-competitive conduct by 3 car companies in not allowing the market for automobile spare parts and automobile after sale services to grow, to the detriment of consumers and independent repairers. CCI had subsequently directed the Director General to investigate a total of 14 car companies.

CCI has found that the car companies are in violation of:

(i) Section 3(4) of the Act with respect to their respective exclusive supply and distribution agreements with local original equipment suppliers and with authorized dealers which amount to a refusal to deal or foreclosure of the market; and

(ii) Section 4(2) of the Act, since the car companies are dominant in the after markets for their respective brands and have abused this dominant position by denying market access to independent repairers, exploitative pricing and leveraging dominance in one relevant market to protect other relevant market.

Pursuant to these findings, CCI has directed the car companies inter alia to:

(i) cease and desist from indulging in conduct found to be in contravention of the provisions of the Act;

(ii) adopt appropriate policies to put in place an effective system to make the spare parts and diagnostic tools easily available in the open market to customers and independent repairers; and

(iii) not to put any restrictions or impediments on the operation of independent repairers/ garages.

CCI has also imposed a penalty calculated at the rate of 2% of the average turnover of each of the 14 car companies for the previous 3 years amounting in aggregate to INR 2544.64 crores. This is the highest aggregate penalty that has been imposed by the CCI in any one case till date in relation to anti-competitive practices.

CCI has stated that in determining these remedies, their objective is to correct distortions in the aftermarket, provide corrective measures to make the market more competitive, to eradicate practices having foreclosure effects and to put an end to the anti-competitive conduct of the parties.

[greenhorn]

The CCI ruling might prove to be counter productive. If Manufacturers are forced to reduce margins, Independent spare parts dealers might decide to stop stocking the low margin ones which don't sell enough, because they would not be profitable.

[jagzrk]

Wow, my email to Honda did generate some good response from the service center.

This is what I had emailed them:

---
Dear Honda Team,

Very bluntly put, your products are great, but your after-sales is not.

I own a Honda City ZX 2006 edition. Whenever I try to get spare parts from your dealers, I have to bear labour charges running into astronomical amounts along with the sky-high price of the spare parts themselves. To add to misery, the customer has to wait for more than 4-5 hours for a simple change like air filter to get the job card done and so many procedures which may be necessary for you, but a complete time-hog for the customer for such simple services.

There is no option that I know of, from where I can get spare parts for my car at the rate no more than listed MRP. Your service dealers flatly deny customers spare parts unless they are changed then and there (with astronomical bills of course).

Please let me know any outlet or contact through which I should be able to procure spares for my vehicle without any hassles.

Best Regards,
Jagdish Rapata
---

The dealer called up stating they are ready to provide spare parts at MRP but without warranty (6 months for the spares) if work is done outside. I opted to get it done from Crystal Honda, Bavdhan - Pune when they stated labour charges of around Rs.800. They changed Front Lower Arms and Link Rods including labor at 10K with free washing, interior cleaning and a neat shiny engine compartment. The earlier quote was somewhere around 18K.

Looks like the CCI order is generating some pressure on the Authorized Service Network?

[PPS]

Delhi High Court has stayed the CCI Judgment till Madras High Court disposes of the Hyundai petition!

http://www.livemint.com/Politics/j8A...ti-Suzuki.html

Court Order: http://delhihighcourt.nic.in/dhcqryd...172942&yr=2014

[globemaster]

Can someone please throw some light on the current scenario (may 2015) with regards to Over the counter spare parts sale. Is this now implemented or still hanging in the doorway?

[0xTKB]

Sorry to bother OP again. But is this judgment valid for two-wheelers too?

[techcoze]

Most of you must be aware that Competion Commission of India penalized 14 car makers in India (including Honda) in 2014 for restricting spare parts access to only dealers and monopolizing to extract out max benefit from consumer.

Read more about it here: http://profit.ndtv.com/news/industri...onopoly-654199

Ever wondered why your car servicing or repair bills are running into thousands, sometimes into lakhs. Or why, it's extremely difficult to get your high-end car repaired from your neighborhood mechanic?
The Competition Commission of India has the answer in a 215-page report, where it has pulled up all 14 car makers for "violating trade norms in the spare parts markets" and has imposed a penalty of Rs. 2,545 crore on them. (Read the full report here)
Domestic companies such as Maruti, Tata Motors and M&M as well as global bigwigs such as Honda, Volkswagen, Fiat, BMW, Ford, Mercedes-Benz and Toyota are among those who have been penalised for "monopolistic control over spare parts and diagnostic tools."
Mahindra & Mahindra says it proposes to appeal against the order. Ford's India unit said it was reviewing the order and its implications, adding that the company had been working to enhance the availability of parts, Reuters said. Other carmakers are yet to comment. (Read)
The report says:
1) Most car manufacturers deny independent repairers (mechanics) and multi-brand service providers access to spare parts and tools/manuals to complete repair work. Spare parts and diagnostic tools are available only with their authorized dealers.
2) Most car manufacturers have restricted their authorized dealers from selling spare parts and diagnostic tools over the counter. They have also imposed restrictions on their respective local suppliers from supplying spare parts directly in the market.
3) These spare parts are sold at very high prices to customers. In fact, the mark-up in pricing of the top 50 spare parts ranges from 100 per cent to 5000 per cent. In simple terms, customers end up paying between double to 50 times the cost of the most commonly used spare parts.
4) Car manufacturers make sizeable profits from selling spare parts. According to a CII-McKinsey report, the aftermarket business is highly profitable for car manufacturers. Spare parts sale contributes a mere 24 per cent to revenues of manufacturers, but 55 per cent to overall profits.
5) Many car manufacturers are making losses in primary market and recouping the profits in the aftermarket from the sale of their brand of spare parts.

Some time ago I visited HASS for replace lens of cabin map light, they did not have part in stock so had to place order (amount 170/-). After a week part arrived, and I went to service center to collect part. This is very simple to fix part, just 2 tabs on it, give a little push and it fits. HASS insisted that they cannot handover part to me directly, it has to be installed by them. When i forced them, they agreed to hand over it to me by after applying labor charges in invoice (amount 90/). They excuse was that it's honda rule and they cannot do anything about it.

I thought of checking with Honda India about this policy and when they are planning to make parts available over the counter. This issue was not about just Rs. 90/-, but about the ethics of trade and issue of monopoly. Car manufacturers take this monopoly to the level that Indian OEM part vendors are also now allowed to sell their parts to anyone except car manufacturer. This is dirty practice to extract out max from customers pocket by not leaving him any option. E.g. Company selling Golden cruiser oils and coolants is also manufacturing for many OEM. But they are not allowed to sell them in open market at all. This is what Honda sells us in service center, check the dealers list on this page- it's all HASS centers.
http://scci.co.in/index.php?route=pr...facturer_id=22

On top of this, if you install any aftermarket part in car and visit HASS next time for service, they will give you list of all aftermrket parts and will insist to replace them. 2-3 lug nuts of my wheel are aftermarket (had to get them from outside since Honda had not it available in stock), and during last service, they made sure to list those as well in advisary note and aske me if I want to change them. When I asked what's issue with them, then plain standard reply- they are not Honda part, so we don't recommend them.

Check my following mails to Honda India, their initial reply was about work quality, warranty, blah. blah. They said I can get parts once by signing undertaking about warranty and related terms. When I insisted that this is not about one time requirement, but about to clarify honda policy which i can refer to whenever I am in need of parts, they kept mum, there is no reply from their side after that.
This is sheer dirty business model to trap customers. I read today on our forum about Toyota staring online portal for making spared available to both consumers and distributors. When will we see the day when Honda will also make parts available online?

[Lalvaz]

Techcoze - You're absolutely right, most of the manufacturers force customers to get the repairs/installation done at the ASS only. Its illegal and they know it. You have taken the right steps. Keep following up with them and if they do not respond to your letters, please escalate the matter to the Competition Commission. with a CC to Honda. That will get the ball moving for sure.

Time that the manufacturers get ethical in their conduct in the Indian market. Taken the Indian customer for granted for far too long.

[McLaren Rulez]

Domestic companies such as Maruti, Tata Motors and M&M as well as global bigwigs such as Honda, Volkswagen, Fiat, BMW, Ford, Mercedes-Benz and Toyota are among those who have been penalised for "monopolistic control over spare parts and diagnostic tools.

Does't Maruti sell spare parts over the counter? Or is it the diagnostic tools for which they're being included?

[paragsachania]

Originally Posted by McLaren Rulez

Does't Maruti sell spare parts over the counter? Or is it the diagnostic tools for which they're being included?

No they do not and you can purchase these parts only from MGP outlets.

I recall very well when I went to Pratham Motors, Bellandur in Bangalore to pick the left hand side Mirror assembly for my WagonR and they asked me to get the vehicle as they dont sell parts OTC.

Second incident I recall was at Sundaram Motors, A Chevrolet dealer then to pick Wheel caps for the Spark and they asked me to bring the vehicle too.

However, I also have heard cases where folks have purchased parts OTC from Dealer workshops as well.

[hserus]

Most long running FNG type places have at least unofficial contacts at the various dealership service centres so that they can source parts that way, for those where over the counter is technically not available.

[Pranay J Pandya]

I think all dealers in general not just Honda are a bit wary when it comes to selling parts over the counter. They should be able to sell you the parts over the counter without charging you labor. They probably have standing instructions not to encourage over the counter sale of parts and this is one way of discouraging people.

Maruti on the other hand, does have outlets where one can purchase genuine spares over the counter. I am however, yet to see any other manufacturers have such a system in place.