Ashok Leyland Invites Tesla For Partnership In India; Was Maruti Suzuki Anti-Competitive?
Hinduja Group owned Ashok Leyland has rolled out an open offer to Elon Musk, for partnership in India.
If Musk accepts this, then it can be a huge boost to the concept of electric cars in India.
Meanwhile, did Maruti Suzuki indulge in anti-competitive strategies to win more orders?
The investigation is currently on..
Ashok Leyland To Elon Musk: Let’s Work Together
Ashok Leyland, known for manufacturing buses and trucks in India, has offered to work as partners with Elon Musk, and bring Tesla to India.
In 2016, Ashok Leyland churned out revenues of Rs 21,000 crore, and in 2016, they employed 11,000 staff. Ashok Leyland was founded in 1948. IN Q3 of 2018-19 financial year, Ashok Leyland reported revenues of Rs 6325 crore.
During the AWS Summit, Venkatesh Natarajan, Senior Vice President and Chief Digital Officer, Ashok Leyland confirmed this offer of partnership.
He said, “We are open to Musk’s offer. I truly believe that it’s not just one partner who can contribute to the electric car dream in India.”
Ashok Leyland is regarded as India’s largest manufacturer of buses, and the world’s 4th largest manufacturer.
Elon Musk has tweeted in the month of March that he is looking forward to partnerships in India, and he aims to bring Tesla vehicle by this year-end.
There has been no response from Elon Musk on this offer from Ashok Leyland yet.
Maruti Suzuki Was Anti-Competitive?
Meanwhile, The Competition Commission of India (CCI) has initiated an investigation into Maruti Suzuki, on allegations that the company resorted to anti-competitive measures to win over customers, and crushed the competition.
For instance, one serious allegation is that Maruti Suzuki forbade dealers from competing amongst themselves, and forced them not to lower the rates of cars.
This resulted in customers paying additional money, which could have been saved if the dealers were allowed to operate on their own.
It seems that CCI was investigating the allegations for last 10 months, and soon, a verdict would be announced.
South Korean firm Hyundai Motor was fined $12.5 million by CCI in 2017 for resorting to anti-competitive strategies. As per some experts, the case of Hyundai Motor and Maruti are almost same.
With more than 50% market share, Maruti Suzuki is #1 player in the automobile sector in India.
We will keep you updated, as we receive more updates.