EU Motor Vehicle Service New Regulations Promote Auto Parts Competition

The European Commission issued a new regulation for the motor vehicle service on May 27, aiming to eliminate the binding agreement between automakers and authorized repairers, and promote competition in the auto repair industry, thereby reducing the cost of repairing vehicles for consumers.

Under the newly revised regulations, the EU will ban automakers from attaching conditions to their warranty commitments, forcing consumers to find only their designated repairers. When consumers choose independent repairers, car manufacturers should share relevant technical information with them equally. The EU has also reduced access restrictions in the automotive parts market, making it easier for independent repairers to obtain relevant automotive parts.

Joaquin Almunia, a member of the European Commission responsible for competition, said that the implementation of the new policy will reduce the cost of vehicle repair and maintenance, thus bringing benefits to consumers.

According to estimates by the European Commission, car repair costs account for about 40% of the total cost of buying and using a car, and have shown an upward trend in recent years.

The European Commission also recommended on the same day to revise the current complex policies in the automotive distribution market, simplify related procedures and reduce distribution costs. It is estimated that distribution costs account for an average of 30% of the car's selling price.

The European Commission said that the new regulations on the auto repair market will be implemented from June 1 this year, and the measures for the auto distribution market will be officially implemented on June 1, 2013.

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