ACCC urged to tackle emerging challenges in Australia’s automotive industry
ACCC urged to tackle emerging challenges in Australia’s automotive industry | Insurance Business Australia
Motor & Fleet
ACCC urged to tackle emerging challenges in Australia’s automotive industry
Organisation outlines recommendations to protect businesses and consumers
Motor & Fleet
By
Roxanne Libatique
The Victorian Automotive Chamber of Commerce (VACC) has presented its recommendations to the Australian Competition and Consumer Commission (ACCC) for the 2024 Strategic Review, urging the regulator to focus on critical issues affecting the automotive sector.
In its submission, VACC raised concerns related to electric vehicle (EV) education, warranty claims, service and repair data, and environmental claims.
Electric vehicle education
A key issue VACC highlighted is the need for more robust consumer education on EV servicing and associated costs.
The chamber recommended that the ACCC help manage consumer expectations and tackle misinformation about maintenance requirements for EVs.
This call comes as the global market for hybrid and EV insurance is projected to grow by 16.88% annually through 2030, according to HTF Market Intelligence. Increased adoption of EVs has driven demand for specialised insurance products that address risks such as battery replacement, charging infrastructure, and the impact of government incentives.
Warranty and recall processes
VACC also pointed to ongoing problems with warranty reimbursements, where manufacturers have delayed or refused compensation to dealers for warranty work.
The chamber urged the ACCC to enforce fair practices and ensure dealers are reimbursed for warranty claims, product defects, and recalls in a timely manner.
Motor Vehicle Service and Repair Information Scheme
On the topic of the Motor Vehicle Service and Repair Information Scheme, VACC acknowledged improvements but said more needs to be done.
The chamber called for the ACCC to uphold the “fair and reasonable” standard for data access and ensure that third-party data providers comply with safety standards.
Environmental claims
Environmental claims made by some manufacturers regarding EVs were another area of concern.
VACC recommended that the ACCC take an active role in preventing misleading claims, which could raise unrealistic consumer expectations. It warned that businesses could face legal challenges if such claims go unchecked.
Franchising agreement issues
The submission also flagged issues with franchising agreements, where changes to operations manuals can negatively impact dealership profitability.
VACC called on the ACCC to address unfair contract terms and ensure dealers are not adversely affected by unilateral changes from manufacturers.
New automotive market entrants
Finally, VACC raised the need for ACCC oversight in managing the influx of new EV manufacturers entering the market, particularly from China.
The chamber urged the ACCC to ensure that these companies comply with Australian Consumer Law and maintain accountability.
Geoff Gwilym (pictured), VACC CEO, said it is essential for the ACCC to focus on these critical areas to maintain fair competition and safeguard both businesses and consumers.
“As the automotive industry undergoes significant transformation, it’s crucial that the ACCC focuses on these key issues to ensure fair competition and protect both consumers and businesses in our sector,” he said.
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