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TMI Blog2024 (1) TMI 1387X X X X Extracts X X X X X X X X Extracts X X X X ..... DA"), TVS Motors ("TVS") and Ather Energy Private Limited ("Ather"), (hereinafter, together referred to as "OPs") alleging contravention of provisions of Section 4 of the Act. 2. It is stated in the information that the OPs are engaged in manufacturing and selling of Electric Two Wheelers (ETWs). 3. The Informant has alleged that the OPs are involved in taking undue/ illegal advantage of Faster Adoption and Manufacturing of Electric & Hybrid Vehicles Policy (FAME) launched by the Ministry of Heavy Industries and Public Enterprises, through Department of Heavy Industries (DHI). 4. The Informant has stated that the intent of the Government for the enactment of FAME policy in 2015 was to promote the adoption of electric and hybrid vehicles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory price of 2-wheelers was maintained to the earlier set limit of INR 1.5 Lac. 6. It is alleged that the OPs have been repeatedly abusing the sacrosanct limit set by the government by selling integral equipment such as charger and proprietary software/ upgrades outside the limit of INR 1.5 Lacs, at an additional cost. This deceitful pricing allows them to secure prices ranging from INR 1.6 to 1.8 lakhs, thereby, allowing them to fall within the government-mandated limit of ex-factory prices of INR 1.5 Lac under the FAME policy, which otherwise they would not be eligible for, thus undermining the basic intent of the FAME policy. As a consequence, it deprived genuine manufacturers from availing the benefit of the budget allocated for EVs u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Information, the market share of Ola, Vida, TVS motors and Ather for Calendar Year (CY) 2022 are 17.57%, 15.75%, 7.51% and 8.32%, respectively. In support of its averments, the Informant has inter alia provided copies of news articles; quotation from dealers of OPs and a table depicting the subsidy availed by some of the entities including OPs. 9. Lastly, the Informant has stated that the Ministry of Heavy Industries (MHI) failed to timely or procedurally instruct these companies to return the subsidies usurped by them on account of under-invoicing and make them liable for misappropriating subsidies from the government and over-charging customers. It is also stated that MHI further allowed these companies to return the excess amount re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequently foreclosing the benefit of subsidy to other manufacturers whose products actually fall within the price limit set under the FAME policy. The Informant has alleged abuse of dominant position by the OPs in contravention of provisions of Section 4 of the Act. 14. For an analysis of the case under Section 4 of the Act, the first requirement is to delineate the relevant market as per Section 2(r) of the Act which comprises of relevant product market and relevant geographic market in terms of Section 2 (t) and 2(s) of the Act. The next step is to assess the dominance of OPs in the relevant market so delineated, in terms of the factors enumerated under Section 19(4) of the Act. Once the dominance of an OP is established, the final step ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tives provided by different state governments. Therefore, the relevant geographic market may be delineated as India, and thus, the relevant market in the instant matter may be carved out as market for manufacture and sale of ETWs in India. 16. The Commission proceeded to asses dominance of OPs in the relevant market as delineated above. As per publicly available information, it is understood that Ather Energy and Ola entered the electric mobility sector in 2016 and 2017, respectively; Vida World, a unit of Hero Motocorp, was incorporated in 2022. TVS, an established player in the motorcycles and scooters market, launched its first electric scooter in January 20201. 17. The Commission notes that as per the Informant, Ola, TVS Motors, Ather ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and circumstances of the present case, the Commission finds that no prima facie case of contravention of the provisions of Section 4 of the Act is made out against any of the OPs in the instant matter. Accordingly, the information is ordered to be closed forthwith in terms of the provisions contained in Section 26(2) of the Act. Consequently, no case for grant for relief(s) as sought under Section 33 of the Act arises and the said request is rejected. 22. Before parting with the order, the Commission notes that the Informant has prayed for grant of confidentiality over its identity and documents that may reveal its identity. Accordingly, in terms of the Regulation 35(1) of the CCI (General) Regulations, 2009, the Commission dire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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