Dear NADA Member,
Last week, the Competition Commission of South Africa (CCSA) released the revised Automotive Aftermarket Guidelines (attached).
In June 2021, the CCSA published its initial guidelines for competition in the South African Automotive Aftermarket, aimed at fostering greater participation from Independent Service Providers (ISPs) within a structured and transparent framework. The original guidelines called for manufacturers to grant access to training and technical vehicle data, introduce pre-determined and disclosed approval criteria for workshop appointments, unbundle factory service plans for new vehicles, reduce some costs associated with dealer corporate identity requirements, and expand the approval of independent workshops by insurers, among other measures.
In May 2024, draft revisions to the guidelines were published for comment. NADA, with support from Bowmans Attorneys, submitted feedback to the CCSA on several key points. This was followed by a June 2024 engagement, during which NADA representatives articulated our concerns. The CCSA demonstrated a collaborative spirit, fostering constructive dialogue with NADA’s delegation.
Following these engagements, the final revised guidelines incorporate updates to certain provisions, while also removing or amending others based on input from NADA and other industry stakeholders. This collaborative and pragmatic approach by the CCSA underscores the value of government, its agencies, and businesses working together.
PLEASE NOTE: The guidelines do not include a transitional period for the changes to take effect.
We encourage all NADA members to familiarise themselves with the key revisions impacting their operations:
- Spare Parts – The definition of spare parts has been expanded to include “accessories”.
- Unbundling of plans – This provision now applies to new, used, and demo vehicles, rather than being limited to new vehicles as per the original guidelines.
- Transfer and cancellation of Service and Maintenance Plans – In cases where an OEM or third party is unable to transfer a plan to a replacement vehicle (e.g., when a vehicle is written off by an insurer), the OEM or third party must notify the client.
- Commercially sensitive information – There is a new requirement to train all staff on the handling of competitively sensitive information and applying the relevant rules.
- Access to technical information – Dealers are now required to include part numbers in all quotations and invoices.
Please take careful note of these changes and adjust your operations accordingly.
Kind regards,
Brandon Cohen
Chairperson
NADA
