Commission embarks on roadshow to raise Automotive Aftermarket Guidelines awareness

Pretoria - The Competition Commission (Commission) has announced that it will from tomorrow, 29 November 2022, embark on a two-day roadshow in two provinces to raise awareness about the Guidelines for Competition in the South African Automotive Aftermarket (Automotive Guidelines).

The Commission said it will be visiting automotive hubs and workshops of independent service providers (ISPs), panel beaters, and small and medium enterprises in the automotive aftermarket in Gauteng (Johannesburg, Pretoria, and surrounding areas) and the Eastern Cape (East London, Gqeberha, Mthatha, and surrounding areas).

The guidelines are aimed at promoting competition in the automotive aftermarket, specifically to promote economic access, inclusion, and greater spread of ownership for Historically Disadvantaged Individuals (HDIs).

The Commission said the latest roadshow follows the receipt of several complaints regarding practices perceived as unfair in the automotive aftermarket sector- including:

• Unbundling the sale of motor vehicles with value-added products;
• Appointment of service providers to panels by Original Equipment Manufacturers (OEMs) and insurers, and allocation of work;
• Voiding of manufacturer warranties when consumers take their in-warranty vehicle to an
  independent service provider and
• Access to OEM technical information by ISPs.

The Commission will be handing out educational publications on the automotive aftermarket and charts that can be put up in the workshops containing information on what the Guidelines mean for different stakeholders including consumers, ISPs, OEMs, insurers, and approved dealers.

The Commission first published the Guidelines in January 2021 and invited commentary from various stakeholders who were impacted by the guidelines.

In March 2021, the South African Insurance Association (SAIA) issued a statement that its members in the non-life insurance industry fully support the objectives of the Competition Commission Guidelines as they relate to the non-life insurance industry and the adoption of proactive measures that promote competition and transformation in the South African automotive aftermarket. 

SAIA said being a critical stakeholder in the Automotive Aftermarket, it welcomed the extensive consultation approach that was adopted by the Competition Commission and hoped that the commission will remain open to engaging with relevant stakeholders where appropriate, during the implementation phase.

SAIA believed that the Guidelines are a progressive step towards assisting commercial stakeholders, including the non-life insurance industry, and in the promotion of competitiveness and transformation in the Automotive Aftermarket.

The association said with its members conducting their businesses within a regulated and highly competitive environment, it was its view that the Guidelines will assist to improve the regulatory practices that protect the consumer through increased consumer choice and accelerates transformation through participation of independent service provides, while enhancing the sustainability of the non-life insurance industry and the ecosystem within which it operates.