The Serbian Commission for the Protection of Competition
recently published a market study in which it assessed the state of
competition in after-sales services for motor vehicles and home
appliances in 2015. By way of this market study, the Commission
analysed whether there is a need to adopt specific legislative
measures in the sectors concerned.
MOTOR VEHICLES MARKET
The Commission analysed both the market for motor vehicles and
the market for aftersales services. It found that the motor
vehicles market is moderately concentrated with numerous global
brands and manufacturers active in Serbia. No manufacturer has a
market share exceeding 30% in Serbia. Companies which sold new
motor vehicles are Fiat (17.1%), Skoda (15.5%), VW (7.7%) and
Hyundai (7%). However, market trends do not benefit the sale of new
motor vehicles. The majority of sold motor vehicles in Serbia are
second-hand (used cars), most of them more than 10 years old. Motor
vehicles of up to 5 years of age amount to only 6.5% of the
The after-sales services market is characterised by a large
number of participants, including official, branded repair shops
(around 300-320) and independent repairers (around 1500-1600).
Branded repairers typically offer repairs and spare parts for just
one manufacturer and are perceived to offer higher prices than
independent repairers (the price of original spare parts and
working hours are on average of 119% and 86% higher, respectively).
On the other hand, independent repairers are typically thought to
offer spare parts of lower quality. Branded repairer shops
therefore feel that independent repairers engage in unfair
competition practices. The value of the spare parts market is
estimated at EUR 440 million, while the value of services and
repairs is estimated at EUR 600-650 million.
HOME APPLIANCES MARKET
The Commission also assessed the markets for refrigerators and
washing machines. It found that both markets are moderately
concentrated with only one manufacturer having a market share
exceeding 30% in Serbia (Gorenje). Other notable brands are Beko
with a 10-20% market share, followed by Vox, Candy and Whirlpool,
each with a 5- 10% market share. The total value of the market for
refrigerators and washing machines is estimated at EUR 70-75
million in Serbia.
The after-sale (services) market has been found to be a market
with many players (approximately 1500) with small market shares;
none of them has a share of more than 5%. The majority of repairers
are small independent ones (around 1000), while the number of
branded repairers amounts to 497. Branded repairers in this market
have been found, on average, to offer higher prices than
independent repairers (the price of original spare parts and
working hours are on average 30% and 75% higher, respectively). On
the other hand, most independent repairers are often said to offer
equipment of dubious quality. The value of the after-sale services
is estimated at around EUR 12-15 million.
The market study provides for several recommendations to a
number of government bodies:
to the Commission - to amend the
existing vertical block exemption regulations to be in line with
relevant EU regulations;
to the Ministry of Construction,
Traffic and Infrastructure – to adopt the legislation
obliging the manufacturers of motor vehicles to provide access to
vehicle repair and maintenance information to independent repairers
in line with relevant EU regulations, and to adopt certain measures
to control the quality of imported spare parts;
to the Ministry of Trade, Tourism and
Telecommunications - to investigate and publish the average prices
for car maintenance and repairs of different manufacturers so that
consumers may have full information on the total costs of
purchasing of motor vehicles, and to increase its investigation
efforts against illegal practices of repairers.
The Commission invites all interested parties to comment on the
results of the market study by 31 December 2016.
The Commission also announced its next market study, which will
take place in the retail sector, i.e. stores supplied with food,
beverages and tobacco. The study would encompass the retail
end-user and procurement markets, focusing on the relationship
between retailers and their suppliers.
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