Market Inquiry on Car Parts in Singapore
CCS undertook a market inquiry into the supply of car parts in Singapore, which aimed to better understand how the car parts market works and the effects of market features on competition in Singapore. Among other things, CCS studied whether there are restrictions to the access to car parts, and whether car workshops are able to access technical information and equipment necessary to perform servicing and repairs. Among the key findings, CCS identified concerns with regard to car dealers’ warranty terms and conditions that require non-warranty related servicing and repairs to be carried out at authorised workshops in order for car warranty to remain valid. In response, CCS has worked with major authorised car dealers to remove such warranty restrictions to help the market work better. A detailed report of CCS’s findings is available here.
In the first phase of its market inquiry, CCS commissioned HoustonKemp Pty. Ltd. (“HoustonKemp”) to conduct a study to understand the aftermarket supply of and demand of car parts in Singapore and identify aspects of the industry that are likely to raise competition concerns. The consultancy report can be found here.