Unethical and Restrictive Trade Practices by Honda 2 Wheelers Dealer in Punjab

Came across some unethical and illegal practices being followed by Honda Two-Wheelers Dealer Mahesh Honda (Mahesh Agencies) Old Grain Market Road Kapurthala in Punjab. They are literally forcing consumers to buy 2 wheeler accessories of specified amount from them at time of billing and delivery of vehicle.

According to one of the consumers Kulbhushan & Associates from my home town Kapurthala who had booked a Honda Activa from this dealership at the time of Delivery of Honda Activa Black Colour on 1^st July 2010 at Showroom post billing in the name of M/s Kulbhushan & Associates they were informed that they have to compulsorily also buy accessories worth appox. Rs. 3200. Typically authorized dealers/company showrooms make huge margins on vehicle accessories compared to outside vehicle accessories shops. When the customer requested them that they were not in need of any such accessories they were told by the dealer that customer is not having any option but to buy these accessories for the vehicle along with delivery of new vehicle. After arguments the informed customer who did not agree to this restrictive trade practice by this Honda dealership of being forced to buy these highly marked up extra products, had to cancel the purchase of vehicle.

From what we understand according to the dealers like Mahesh Honda as there is a long waiting list for two wheelers in this booming automobile market it is a favor they are doing to customers by delivering the vehicles and so customers getting delivery of vehicles have to agree to the terms at which they make the sale.

In above case customer has also contacted HMSI and reported the incident. Honda Motorcycle & Scooter India (HMSI) needs to make sure that such restrictive trade practices and monopolistic attitude of dealers are kept under check and as these practices be answerable to consumers if such practices are going on with or without knowledge of the company. One of the interesting things listed on HMSI website's Philosophy section is three joys in pursuit of which the company conducts it's activities one of which is "The Joy of Buying" which essentially highlights importance company gives to a happy and satisfied customer. After all companies and their products exist in this market because of consumers and practices such as this impact the company's brand and image in a negative way.

I would suggest consumers who face such incidents do not agree to forced selling/cross selling of products, report the same to company or to Consumer forums or Consumer Courts.

- Neeraj