Auto stocks today fell by as much as 3 per cent following the Competition Commission imposing a penalty of Rs 2,545 crore on 14 car makers for violating trade norms in the spare parts and after services market.
Tata Motors fell by 2.18 per cent, Maruti Suzuki - 1.24 per cent and Mahindra & Mahindra - 1.23 per cent on the BSE. Hindustan Motors' scrip also declined by 2.77 per cent.
Shares of Tata Motors saw some recovery and was trading 0.24 per cent higher at Rs 509.50 at 1310 hrs.
In the first major order against auto players, the Competition Commission yesterday slapped a penalty of Rs 2,545 crore on 14 car makers, including Maruti Suzuki and Tata Motors, for violating trade norms in the spare parts and after services market.
Honda Siel Cars India, Volkswagen India, Fiat India Automobiles, BMW India, Ford India, General Motors India, Hindustan Motors, Mahindra & Mahindra, Mercedes-Benz India, Nissan Motor India, Skoda Auto India and Toyota Kirloskar Motor have also been penalised.
In a 215-page order, the Competition Commission of India (CCI) has imposed a penalty totalling Rs 2,544.64 crore on the 14 car companies. For each entity, the individual fine amounts to two per cent of their average turnover.
The penalty is to be deposited within 60 days of receipt of the order.