Bamyris Motors Ltd, the exclusive distributor of Hyundai motor vehicles and related products (spare parts and accessories) in Mauritius, has been pinned down by the island’s Competition Commission for imposing abusive fees.
According to the Commission, Bamyris Motors Ltd was imposing a quotation fee of Rs 2,000 to provide its price list for Hyundai make OE spare parts.
Usually, upon a damage or the need for replacement of spare part(s) on a motor vehicle, repairs and maintenance garages/workshops prepare an estimation of costs and repairs which elaborates on the likely costs to be involved such as potential survey fee, labour costs, as well as the costs of the spare parts to be replaced.
This estimation of costs and repairs is subsequently sent to insurance companies for counter-verification and identification of the indemnification quantum as prescribed by the insurance policies. Once approved, the garages and workshops proceed with the repairs and/or maintenance.
Restrictive business practice
In December 2021, the Competition Commission opened an investigation (INV061) pursuant to Sections 30(c) and 51 of the Competition Act 2007 (the Act). The Commission said it had reasonable grounds to believe that a “restrictive business practice from the alleged conduct of imposition of a quotation fee for Hyundai OE spare parts by Bamyris Motors Ltd was occurring”.
Given that Bamyris Motors Ltd is the exclusive distributor of Hyundai motor vehicles and related products (spare parts and accessories), it is in a de facto monopoly situation in the supply of OE parts for Hyundai motor vehicles.
“The imposition of a quotation fee of Rs 2,000 could likely distort competition in the aftermarket for repairs and maintenance. Private garages and consequently customers would have to incur additional costs in relation to repairs and maintenance of their vehicles,” the Commission said.
In the course of the investigation and pursuant to Section 63 of the Act, Bamyris Motors Ltd voluntarily offered undertakings to address the potential competition concerns and not to impose such a quotation fee.
The undertaking was accepted by the Competition Commission.
Source: Competition Commission of Mauritius
