Competition Commission
On July 1, 2021, the rules for competing in the South African car aftermarket went into force. The Competition Commission recently held a workshop to address the implications of the rules for consumers and other business players.
Guidance for the automotive industry
They are designed to encourage inclusiveness and foster competition by boosting the involvement of historically underrepresented groups and small and medium-sized businesses (SMEs) in the automobile mature industry (HDPs). The rules do not, however, have legal standing.
Motor vehicles
Irrespective as to whether their automobiles are still covered by warranties, consumers can decide whether to replace spare parts on their vehicles with original or non-original parts. When they go into effect, buyers will be able to get their cars fixed at any shop of their choosing.
National consumer commission
The commission reminded customers that they should contact the appropriate contact center at the vendor or OEM and pursue the effective grievance procedures if they have issues with the telecom operators, dealers, or insurers. The Consumer Rights Protection Commission may also be contacted for assistance as necessary.
Participation and lower barriers
The need to encourage SMEs and HDPs to enter and participate in the automotive aftermarket is one of the guidelines' primary goals. These goals include boosting the proportion of SMEs and HDPs in the sector and ensuring that network operators on insurance panels are fairly assigned work by insurers, with no network operator serving on a panel for longer than five years.
Forward with guidelines
To evaluate how the industry is implementing the rules, the committee will engage with industry stakeholders. According to Bowmans, in some circumstances where adherence is commercially impracticable, industry leaders may need to develop purposeful conceptions.
