The Competition Commission on Tuesday called for input on a draft competition code of conduct for the automotive sector aimed at dealing with anticompetitive conduct concerns, as well as at enhancing transformation in the industry and fostering inclusive growth.
Automotive industry participants, consumers and interested parties have until November 3 to submit their views and comments on the Automotive Code of Conduct for Competition, which was gazetted on September 22.
This document followed the commission’s extensive advocacy work and engagement with various private and public entities in the automotive aftermarket industry following concerns of anticompetitive conduct.
Particular attention was paid to the need to open up the market, transform and encourage increased economic participation of historically disadvantaged individuals (HDIs), the authority said in a statement on Tuesday.
The main outcomes of the code of conduct included the increased involvement of small HDI service providers in the industry in in-warranty autobody repair work, service and maintenance work of in-warranty vehicles and original-equipment manufacturer (OEM) dealership ownership.
Further, the draft suggested the use of equal matching spare parts, in addition to OEM and identical parts, in the repair of motor vehicles; the removal of OEM restrictions in the sale and distribution of parts by retailers whether OEM-approved or independent; and more price and product options for consumers in the sale of parts, as well as consumer education and awareness of costs entailed in the purchase of a motor vehicle.
“The code seeks to address identified concerns in the automotive aftermarket industry and will bind various OEMs, government bodies and industry associations who will be signatories to it,” the commission said.