The Competition Commission has begun a probe into\u00a0exclusionary conduct in the car repair industry following a years-long\u00a0campaign which would allow consumers the right to select where their vehicles are serviced, maintained and repaired, at competitive prices and in the workshops of their choice<\/p>\n
\u201cConsumers have been facing tough economic times for a considerable period now so we welcome the Commission\u2019s efforts to investigate finding a workable solution for the greater motor industry that will not only relieve the burden of consumers but will also facilitate discussion between industry stakeholders,\u201d says Vishal Premlall, Director of\u00a0the Motor Industry Workshop Association (MIWA).<\/p>\n
\u201cCurrently consumers are locked into restrictive warranties that are of long duration and they cannot choose where they service their vehicles during this time,\u201d says Premlall.<\/p>\n
\u201cConsumers are similarly compelled to pay a much higher rate for repairs and parts for their vehicles under warranty when compared to the rates charged by independent workshops.\u201d<\/p>\n
According to MIWA, while 70% of vehicles in South Africa are out of warranty and the consumer can choose aftermarket workshops, 30% of the market remains locked due to restrictive warranty provisions.<\/p>\n
\u201cThis is a lucrative part of the market that could aid in the growth and expansion of the independent workshop sector if it was granted access.\u201d<\/p>\n