NCDRC Fines Maruti Suzuki, Orders ? 1 Lakh Compensation 20 Years After Misleading Mileage Claims
The bench NCDRC bench said, "We have carefully gone through the advertisement dated 20 October 2004 in this regard, and are of the considered view that it is a misleading advertisement. Issuance of such advertisement amounts to unfair trade practice on the part of the manufacturer and dealer."
The National Consumer Disputes Redressal Commission (NCDRC) has ordered Maruti Suzuki India Limited, a renowned car manufacturer in India, to pay ?1 lakh to a customer for providing incorrect information about his car's fuel efficiency.
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In a recent verdict, the NCDRC bench, headed by Dr Inder Jit Singh as the presiding member, asserted, "Normally, a prospective purchaser of a car enquires into the fuel efficiency feature of the car as an important aspect and makes a comparative study of different brands/cars in the same segment with respect to their respective fuel efficiency..."
The bench further added, "We have carefully gone through the advertisement dated 20 October 2004 in this regard, and are of the considered view that it is a misleading advertisement. Issuance of such advertisement amounts to unfair trade practice on the part of the manufacturer and dealer."
Customer's issues with Maruti Suzuki car
In 2004, Rajiv Sharma purchased the car, attracted by advertisements claiming a fuel economy of 16-18 kilometres per litre.
After purchasing the car, Sharma found that it had a considerably lower mileage, only 10.2 kilometres per litre, compared to what was advertised.
Sharma was dissatisfied and sought a full refund of the car's purchase price, including interest, registration expenses, and insurance, amounting to ?4,00,000 from the District Consumer Disputes Redressal Forum.
The District Forum granted only a part of his request and awarded him a compensation of ?1 lakh. Maruti Suzuki appealed the decision to the State Commission, but the District Forum's order was upheld.
Representational Image| Wikipedia
The case then escalated to the NCDRC was led by Justice Inder Jit Singh, where legal counsel Tarun Kumar Tiwari represented Sharma, but Vipin Singhania and Diwakar represented Maruti Suzuki.
DD Motors, the dealership from which Sharma bought the car, did not appear in court despite receiving summonses. As a result, the case proceeded ex parte, which means it was decided in their absence.
Both parties submitted written arguments to the NCDRC. Sharma presented his case on August 7, 2023, and Maruti Suzuki responded on November 2, 2023.
The National Consumer Disputes Redressal Commission (NCDRC) upheld previous rulings, stating that Maruti Suzuki's advertised mileage claims were misleading and a violation of consumer rights. The automobile giant was ordered to pay ?1 lakh in compensation to the customer, Sharma.
Maruti Suzuki: A joint venture established in 1981
Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, is a major player in India's automotive industry.
Formerly Maruti Udyog Limited, MSIL was established in February 1981 as a collaborative effort between the Government of India and Suzuki Motor Corporation, Japan. Currently, Suzuki Motor Corporation holds a 56.2% equity stake, according to company's official website.
The company's shares are listed and actively traded on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
MSIL offers a diverse product range, encompassing 16 car models with over 150 variants, ranging from compact cars like the Alto 800 and Alto K10 to the Ciaz luxury sedan.
MSIL Plant| Image by TIL
Engaged in manufacturing and selling passenger vehicles, MSIL also provides services such as pre-owned car sales, fleet management, and car financing.
With manufacturing facilities in Gurgaon and Manesar and an R&D centre in Rohtak, Haryana, MSIL contributes significantly to India's automotive landscape.
Mileage controversy around parent company Suzuki Motor in 2016
In May 2016, Suzuki Motor, admitted using improper methods for determining the fuel economy of 16 vehicles in Japan, amidst a wider industry scrutiny over government test performances.
Suzuki clarified that the irregularities weren't meant to mislead customers, and the testing didn't exaggerate mileage ratings, as per a NYT report.
The Japan automaker stated that company had no intentions to revise published ratings, contributing to industrywide concerns about carmakers' accuracy in reporting fuel-test results globally.
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This occurred amid heightened scrutiny in Japan's auto industry, with Mitsubishi Motors disclosing the deliberate use of unapproved test procedures and leading to the resignation of its president, Tetsuro Aikawa.
In response, Maruti Suzuki India had reportedly stated that the challenges related to improper fuel economy and emission tests encountered by parent company Suzuki Motor Corp in Japan would not affect India, citing the presence of distinct testing regulations.
¡°The system of conducting vehicle mileage tests in India is distinct from the one in Japan. In India, all vehicles are tested for road load and emissions by government approved agencies like ARAI, ICAT and VRDE,¡± a Maruti Suzuki India spokesperson had said in a statement cited in PTI report.
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Kumar Debvrat is a copyeditor at Indiatimes. He writes about trending topics in India, from human-interest stories to cricket. He has a sharp eye for detail and a passion for storytelling.
