The Namibian Competition Commission (NaCC) will be developing guidelines for the automotive industry after investigations shed light on anti-competitive practices.
The commission in a statement says investigations showed that car manufacturers are limiting the number of approved panel beaters and service centres.
This has led to consumers having fewer options for repairs and maintenance.
“The commission’s investigation found restrictive practices by original equipment manufacturers (OEMs) in the appointment of approved panel beaters and service agents/centres for vehicles on warranty,” NaCC spoeksperson Dina //Gowases says.
Additionally, the commission also found that car manufacturers are controlling which dealerships and retailers can sell their original parts.
“Investigations found restrictive practices by OEMs in the appointment of vehicle dealerships and other retailers who can sell OEM-approved vehicle parts,” she says.
//Gowases says vehicle dealers in Namibia have no authority in the appointment or approval of panel beaters to repair vehicles on warranty.
“Such responsibilities lie solely with the OEMs. Panel beaters are required to apply for factory approvals directly with the OEMs and not through the OEMs’ respective dealers,” she says.
She adds that vehicle dealers are responsible for selling and servicing the brands they sell.
“Dealers are responsible for opening branches and service centres in other parts of Namibia, depending on economic viability. However, OEMs still have the main responsibility of approving more dealers and improving intra-brand competition,” //Gowases says.
It is against this background that the commission has decided to develop guidelines.
“Given that the issues of concern appear to be structural and need to be addressed at an industry-wide level, the commission finds it rather prudent that guidelines be developed to address the identified issues on the state of the competition in the automotive industry.”
//Gowases says consultations will be held with stakeholders once draft guidelines are in place.
– email:shania@namibian.com.naX:@ShaniaLazarus
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!