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Yamaha India not dominant manufacturer says CCI: xBhp News

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  • #1

    Yamaha India not dominant manufacturer says CCI: xBhp News

    Yamaha India have been given a clean chit by the Competition Commission of India.



    An authorised dealer of Yamaha Motorcycles in Ambala had filed a complaint with the CCI, that India Yamaha were using the dominant position in the market to pressurise the dealer to open more sub-dealerships.

    Competition Commission of India (CCI) said in its order dated July 1 -

    "...there does not exist a prima facie case for causing an investigation to be made by the Director General,"
    The complainant said, that it was not financially viable to open sub-dealerships and they had informed India Yamaha regarding the same. But the company forced them to go ahead and open more dealerships, using their dominant position in the market.

    "does not appear to be a dominant procurer of dealership services for retailing its motorcycles in Ambala, considering its market share".
    "Since the opposite party, prima facie, did not appear to be in a dominant position in the relevant market of motorcycles in Ambala and its surrounding areas, it could not be a dominant procure of the service of dealers in Ambala and its surrounding areas of Haryana, where many motorcycle companies have their dealers,"
    Such conduct cannot be stated to be anti-competitive rather it promotes intra brand competition between the dealers of the same brand resulting into consumer good,
    Source: CCI rules out abuse of dominance by Yamaha - The Economic Times
    Tags: india yamaha, yamaha cci, yamaha india
  • #2
    re: Yamaha India not dominant manufacturer says CCI: xBhp News

    News Approved.

    If India Yamaha has pressurised the dealer verbally (in words only), without any consequences to disobedience of the same, then what's so wrong about it?

    I think the Dealer's lawyer (for his personal benefit) might have misguided the dealer to sue for Anti competitive behavior... Because the way I see, the dealer should've sued for breach of agreement/ contract, if he's been illegally & excessively pressurised.
    Again. its my assumption only, so far.



    By the way, What is Yamaha? Its just another company from a medium sized list... Anti competitive behavior? I don't think so. Everyone's expanding in the villages and rural towns. What's wrong about it?
    Again, all depends on the "kind of pressurisation".
    ---
    Brotherhood, Rules, Freedom. Xbhp.
    Indian riding = Alertness, Anticipation and Adjustment.

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    • #3
      re: Yamaha India not dominant manufacturer says CCI: xBhp News

      Originally posted by Samarth 619 View Post
      News Approved.

      If India Yamaha has pressurised the dealer verbally (in words only), without any consequences to disobedience of the same, then what's so wrong about it?

      I think the Dealer's lawyer (for his personal benefit) might have misguided the dealer to sue for Anti competitive behavior... Because the way I see, the dealer should've sued for breach of agreement/ contract, if he's been illegally & excessively pressurised.
      Again. its my assumption only, so far.
      ....
      yes, it was a very stupid act on the part of dealer.
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      • #4
        re: Yamaha India not dominant manufacturer says CCI: xBhp News

        Originally posted by Samarth 619 View Post
        News Approved.

        If India Yamaha has pressurised the dealer verbally (in words only), without any consequences to disobedience of the same, then what's so wrong about it?

        I think the Dealer's lawyer (for his personal benefit) might have misguided the dealer to sue for Anti competitive behavior... Because the way I see, the dealer should've sued for breach of agreement/ contract, if he's been illegally & excessively pressurised.
        Again. its my assumption only, so far.



        By the way, What is Yamaha? Its just another company from a medium sized list... Anti competitive behavior? I don't think so. Everyone's expanding in the villages and rural towns. What's wrong about it?
        Again, all depends on the "kind of pressurisation".
        Why anybody who has invested in a dealership worth lakhs and crores would file complain against his own client? Things must have been very iffy for the dealer that he had no option but to directly complain to CCI. You can't just fire upon the dealer alone.

        The way it works internally, Yamaha is a very hard company to please for the dealers (know this fact by one of my friend who owns one of the oldest Yamaha dealership in the city). I am sure just like Yamaha many car/bikes companies do pressurize dealerships for more sales and product deployment, periodically. This is one of the reason, owning dealership isn't the perfect business to do b'coz you still have a boss (=company) in-spite having your own business, who keeps nagging you on slow performance and inconsistency.

        Being a automobile dealer has its own pain points for sure.

        Good for Yamaha that the report was in their favor.
        www.motorcykle.in - The lighter side of motorcycling

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        • #5
          re: Yamaha India not dominant manufacturer says CCI: xBhp News

          Originally posted by pulsater View Post
          Why anybody who has invested in a dealership worth lakhs and crores would file complain against his own client? Things must have been very iffy for the dealer that he had no option but to directly complain to CCI. You can't just fire upon the dealer alone.

          The way it works internally, Yamaha is a very hard company to please for the dealers (know this fact by one of my friend who owns one of the oldest Yamaha dealership in the city). I am sure just like Yamaha many car/bikes companies do pressurize dealerships for more sales and product deployment, periodically. This is one of the reason, owning dealership isn't the perfect business to do b'coz you still have a boss (=company) in-spite having your own business, who keeps nagging you on slow performance and inconsistency.

          Being a automobile dealer has its own pain points for sure.

          Good for Yamaha that the report was in their favor.
          You may be right. I'm not saying the dealer is wrong. But the place of the complaint is indeed funny.
          I wouldn't have said so much if the complaint was against a breach of agreement in a court of law. Because that would make sense.


          What I mean is, the kind of complaints the CCI handles are those which are against healthy competition.
          Suppose, one giant Multinational company purchases ownership of most/ all the other companies in the industry, then they can misuse the monopoly and kill competition. Then, they can increase price any amount they like, and give any inferior quality of goods.... This Monopoly would be against the consumer's interest.


          For example, IF Hero MotoCorp with all its wealth and resources tries purchasing shares or ownership of TVS, Yamaha, Bajaj, etc. than that is a clear violation of Competition Act (Amendment) 2009, because they would be trying to "kill" competition.


          Coming to this case, Yamaha persuading dealers to go rural, doesn't come under the Scope of CCI. Everyone is going rural: Yamaha, Honda, Bajaj, Hero MotoCorp is already rural, etc.
          So, technically, The Competition Act 2002 (Amendment 2007 and 2009) is NOT being violated here. Hence, CCI can't do anything in the matter.

          There must have been an agreement between the dealer and India Yamaha. The dealer should get that agreement studied by his lawyer(s). That might help more.



          The conclusion of my post is that the dealer may well be right about Yamaha forcing them to go rural, but the dealer has complained at the wrong place. Hope my point is clear?
          Last edited by Samarth 619; 07-05-2013, 03:09 PM.
          ---
          Brotherhood, Rules, Freedom. Xbhp.
          Indian riding = Alertness, Anticipation and Adjustment.

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          • #6
            re: Yamaha India not dominant manufacturer says CCI: xBhp News

            Originally posted by Samarth 619 View Post
            The conclusion of my post is that the dealer may well be right about Yamaha forcing them to go rural, but the dealer has complained at the wrong place. Hope my point is clear?
            Interesting, a good case study for marketing . Okay, say the dealer is right about its claims, where do you think they should complain. After all, the dealer is seeking justice, right? CCI verdict is justified according to their feeds, so what about the dealer then? 'am so confused
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            • #7
              re: Yamaha India not dominant manufacturer says CCI: xBhp News

              the dealer should have filed a complaint case in court of law, i.e. normal courts & and it would have been a normal civil court case.

              ----consecutive posts auto-merged-----

              the dealer should have filed a complaint case in court of law, i.e. normal courts & and it would have been a normal civil court case.
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              • #8
                re: Yamaha India not dominant manufacturer says CCI: xBhp News

                Originally posted by chaosaddict View Post
                Interesting, a good case study for marketing . Okay, say the dealer is right about its claims, where do you think they should complain. After all, the dealer is seeking justice, right? CCI verdict is justified according to their feeds, so what about the dealer then? 'am so confused
                I already answered that in my previous post:
                The dealer should look up to his copy of his agreement with India Yamaha and then proceed legally, with advice from proper lawyers.

                CCI has correctly dismissed the complaint, because its not under the scope of Competition Act. Am I not clear already with my previous post??
                ---
                Brotherhood, Rules, Freedom. Xbhp.
                Indian riding = Alertness, Anticipation and Adjustment.

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