Maruti under CCI radar over car insurance

The Competition Commission of India (CCI) in June last year received an anonymous complaint alleging insurance plans recommended by Maruti while selling cars resulted in customers paying more compared with other options in the market. Based on the complaint, the CCI is assessing whether Maruti has engaged in so-called “tie-in arrangements”, in which a car maker promotes preferred suppliers of complementary goods such as lubricants or insurance, the sources said.

Indian law says such practices are anti-competitive if they end up stifling competition and limiting consumer choices. The Commission is looking into the complaint and “it will take a while”, said one of the two sources, who declined to be named as the case details are private.

A Maruti spokesman said: “We are not aware of any such alleged complaint that is being investigated by CCI.”