Karnataka transport unions oppose Vingroup EV fleet entry in Bengaluru
The Federation of Private Transport Associations has requested a study into whether the company's proposed pricing violates competition laws.
Private transport associations in Karnataka have written to the chief minister to oppose the entry of Green SM into the Bengaluru cab market, according to the Deccan Herald. The Vietnamese company is a subsidiary of Vingroup and operates a fleet of electric cars.
The Federation of Private Transport Associations, Karnataka, alleged in a letter on Saturday that Green SM intends to charge Rs 8 per km. The Federation claimed this rate is much lower than existing rates and demanded a study to see if this constitutes below-cost pricing by a dominant player.
The Federation stated that such pricing would violate the Competition Act, 2002. They requested that the state government refer the matter to the Competition Commission of India if the allegations are established.
The associations argued that approximately 8 lakh cab and auto drivers in Bengaluru and 3 lakh across other towns in the state would struggle to compete. They noted that because the sector is unorganised, workers lack unemployment benefits, safety nets, or bargaining bodies.
Green SM holds an aggregator licence from the state transport department under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, which is valid until September 2031.
The Federation has demanded a compliance audit of the licence and requested the government limit the fleet size to 100 vehicles. They also asked that the transport department check Green SM's fares against the notified framework and ensure any promotional pricing is disclosed.