Hyderabad District Commission Holds Volkswagen India, Dealer Liable For Unilateral Price Increase & Delivery Of Car With Scratches

Brief Facts:

Mr. Veccha Praveen (“Complainant”) visited the Volkswagen India Pvt Ltd. showroom to buy a vehicle for his wedding anniversary. After negotiations, Deccan Mody (“Showroom”) offered a discounted price of Rs. 20,38,200/-. However, later, the Complainant was informed of a price increase to Rs. 22,45,000/-, which the Complainant reluctantly agreed to due to his prior commitment. Subsequently, upon taking delivery of the vehicle, he discovered scratches on the dashboard and horn pad, which the General Manager of the showroom promised to rectify during the first service. However, it removed the scratches by rubbing polish on the scratches and delivered the vehicle to the Complainant. When the Complainant gave the vehicle for a second service, the dashboard was replaced but the issue with the horn pad was left unaddressed. More scratches were still found on the dashboard and the horn pad. Thereafter, the Complainant made several communications with Volkswagen and the showroom but didn't receive a satisfactory response. Feeling aggrieved, the Complainant approached the District Consumer Disputes Redressal Commission-I, Hyderabad, Telangana (“District Commission”) and filed a consumer complaint against Volkswagen and the showroom.

In response, Volkswagen argued that it is not directly involved in the dealership arrangement and is only responsible for warranty-related repairs and replacements. The showroom, on the other hand, argued that it duly informed the Complainant about the price increase before delivery and had replaced the dashboard and horn pad during the first service.

Observations by the District Commission:

The District Commission noted that although the showroom claimed to replace the parts during the first service, it didn't provide any evidence to prove it. Moreover, it noted that the email correspondence between the Complainant and the head of customer relations at the showroom indicated ongoing issues with the vehicle, including a glitch in the dashboard screen and the need for replacement parts.

Therefore, the District Commission concluded that there were indeed defects in the dashboard and horn pad of the vehicle. Regarding the price increase from Rs. 20,38,200/- to Rs. 23,05,341/- within 10 days, it held that no substantial evidence was provided to substantiate that the Complainant was informed of this increase before delivery. Consequently, the District Commission held that the showroom engaged in deficiency of service, unfair trade practices, and misrepresentation.

Having paid the full consideration of Rs. 23,05,200/- to the showroom for the purchase of the vehicle, the District Commission held that it was reasonable for the Complainant to expect a defect-free and hassle-free brand-new car. It held that both Volkswagen and its showroom should bear joint and several liability for selling a vehicle with scratches on the dashboard and horn pad, causing substantial inconvenience and mental distress to the Complainant. It directed them to pay a compensation of Rs. 2,00,000/- to the Complainant and directed them to replace the dashboard, horn pad, and any other affected parts with new items, ensuring proper company fitting. It also directed them to reimburse the Complainant Rs. 20,000/- for the litigation costs incurred by him.