naamsa Supports South Africa's Transformation Ambitions

naamsa Supports South Africa's Transformation Ambitions

naamsa, the Automotive Business Council has confirmed that it will support the Guidelines for Competition in the South African Automotive Aftermarket, as published by the Competition Commission of South Africa.

naamsa and the entire automotive industry believes in an adaptive economy characterised by growth, equity, and prosperity for the people of South Africa. We may not entirely agree with the manner in which the Competition Commission has pronounced itself on some of the key substantive issues contained within the Guidelines, but the spirit and the letter of what we should collectively work towards, as part of our transformation journey, is something that naamsa and the industry supports.

Despite our country’s economic successes and a number of Government policies, strategies and programmes aimed at overcoming economic disparities, the automotive industry recognises that entrenched inequalities continue to characterise certain sectors of economic activity in the country and that the automotive value chain is no exception.

“Our commitment towards transformation is well-documented. It is not our intention to act, work or behave in any way that is contradictory to the country’s ambitions on growth, economic development, employment creation and poverty eradication”, said Mikel MABASA, naamsa CEO.

“Massive economic inequalities in the distribution of, and access to wealth, income, skills and employment, persists. As a consequence, our economy continues to perform below its full potential. It is for this reason that we have embraced the Guidelines as one of many interventions necessary for us to accelerate our transformation ambitions as adopted in the SA Automotive Masterplan - 2035”, MABASA reaffirmed.

It is disingenuous for anyone to conclude that the automotive industry has not taken prudent steps to promote inclusion and to encourage competition through greater participation of small businesses as well as historically disadvantaged groups. We do this in many other areas of our work and have committed ourselves to include the automotive aftermarket value chain as reflected on the Guidelines.

Our engagement with the Competition Commission leading up to the finalisation and the publishing of the current iteration of the Guidelines has been inclusive, open, transparent and robust. We are grateful for the opportunity provided to all industry stakeholders to shape and influence the final outcome. As we work towards the implementation of the Guidelines from the beginning of the third quarter this year, it is important to align on a phased implementation framework that would allow all our members, partners and associates to fully implement these Guidelines as envisaged.

For the purpose of this announcement, it is not our intention to deep dive into any of the substantive issues contained in the Guidelines but confirm that naamsa will issue further educational and information bulletins that will speak to each of the major issues and how we will work with the Competition Commission during the implementation phase.

naamsa notes with serious concern some of the misinformation and inaccurate narrative peddled by irresponsible individuals and groups who would like consumers to believe that the Guidelines are designed to completely overhaul the entire aftermarket ecosystem, and that Independent Service Providers will be a solution to bringing down the price of new vehicles in South Africa through the unbundling of value added services, including Maintenance Plans and Service Plan.

Progress has been made in undoing the legacy of our past. However, the extent to which this economic success has been shared by all of our people is still inadequate for the requirements of a stable and prospering society. The time is right for the introduction of the Guideline to give impetus to our comprehensive and focused strategy towards transformation.