In 2015, the Commission concluded a scoping study highlighting how the automotive aftermarket functions and the state of competition in this industry. The scoping study was as a result of multiple complaints received by the Commission in the preceding four years prior to engaging in the scoping study. In the period between 2011 and 2014, the Commission received approximately 19 complaints in relation to the automotive aftermarket.
Following completion of the scoping study, the Commission identified conduct which creates competition distortions within the automotive aftermarket industry, brought about primarily by the inherent lack of competition between authorised and unauthorised channels in the primary and secondary markets of the automotive aftermarkets industry, which raises barriers to entry and increases costs to consumers.
The Commission’s scoping study also identified that other jurisdictions have also encountered similar competition concerns and have introduced various measures, either through regulation or voluntary codes of conduct, to mitigate and address conduct by market participants which create competition distortions.
As part of advocacy work, the the Commission will host a workshop which will bring together relevant stakeholders including but not limited to, original equipment manufacturers, automotive spare parts manufacturers across various industries including commercial vehicles, mining, construction etc., dealerships, motor body repairers, independent services centres, insurance firms, standards regulators, relevant government departments, complainants who approached the Commission and repair and maintenance service providers. This workshop will serve as a platform for the Commission to engage stakeholders with the view to discussing recommendations that ought to be introduced to remedy competition distortions.