The Namibian Competition Commission (NaCC) says it plans to develop industry guidelines aimed at addressing anti-competitive practices within the automotive sector.
The proposed guidelines are aimed at improving market conditions by promoting fair competition, transparency and consumer protection.
This follows a comprehensive investigation launched in 2018 into the conduct of Original Equipment Manufacturers (OEMs), vehicle dealerships, and panel beaters.
During the investigation, the NaCC identified restrictive practices that have stifled competition and potentially harmed consumers.
“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,” said NaCC Corporate Communications Practitioner, Dina //Gowases.
She further explained that the commission found that car makers and car dealers worked together to limit competition. This made it harder for people to buy cars. The commission also found problems with how car makers chose repair shops and parts sellers.
“Stringent approval requirements and lack of transparency with regards to the selection criteria of approving dealerships and service providers by OEMs, results in detrimental effects in the relevant market in as far as competition across various levels of the supply chain and consumers are concerned,” she said.
Furthermore, the NaCC acknowledged the structural nature of these issues, and believes that industry-wide guidelines can effectively address the challenges faced by the automotive sector.
“Therefore, the Commission is looking at establishing guidelines in the automotive industry in the future, in order to improve market conditions. Relevant stakeholders will be consulted once draft guidelines are in place,” she said.
No timeline for the completion of the guidelines has been provided as yet.
