“Never judge a book by its cover” is a very apt phrase for the automotive world given the level of counterfeit sophistication that exists in this industry. Fake airbags, tires, spark plugs, and oil filters are just a few of the many illicit auto parts gaining popularity in the last few years.
According to the World Health Organization, 1.25 million people die in road traffic each year. This means on average 3,424 deaths per day or over 2 deaths per minute. An additional 20-50 million are injured or disabled. More statistics available here.
One of the top ten causes of car accidents is defective automobile parts, which could be as a result of counterfeit parts such as airbags malfunctioning during use. The issue is not only seen within the borders of emerging markets: developed markets also see their fair share of counterfeit automotive parts primarily because exports can come from the same sources.
Additionally, while it may be easier to spot counterfeit luxury products, the same rules do not necessarily apply for automotive parts. Automotive part counterfeiters can fool even the most expert auto repair specialists into using fake parts. With lower costs, lower standards, and features indistinguishable to their genuine counterparts, fake automotive parts are a lucrative but deadly business.
Dangers of counterfeit auto parts
Fake automotive parts are not like fake purses; real danger can be associated with their use:
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Fake automotive parts are generally substandard, which can put the consumer in harm’s way
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Use of fake auto parts may not fit the car’s specifications and can lead to more mechanical complications with the vehicle and potentially cost more to fix
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Sale of counterfeit versions causes an economic problem for the businesses in the automotive industry and consumer trust in their current products can decline from negative experiences with fake products
How to spot a fake automotive part
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The pricing does not match the typical online price listed. If the part you were sold is typically much cheaper than the Manufacturer Retail Price (MRP, which can be found on the brand’s website), it may be an indication of a possible fake product
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The packaging of the part appears to be low quality. The level of thickness of the packaging material may provide a hint as to the product’s quality level. Even if you are not installing this part by yourself, it is better to re-confirm with the auto specialist by asking to see the packaging. This extra step could save your life
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If you have an old part that you would like to replace, compare it to the new one you are replacing it with. Are they similar? If not this is an indication this is a counterfeit product as well. Note that the look of parts may change a bit over time depending on the manufacturer. Check with the manufacturer for more information
What can be done?
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Original manufacturers should increase consumer education about fakes and publish information on their websites that will help consumers distinguish the original from the fakes
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Auto-retail shops should have an established purchasing method that guarantees genuineness. Shops should also audit their suppliers to ensure that the products are coming from a legitimate, legal source
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Technological solutions like Sproxil should be incorporated into their business processes as it helps everyone in the distribution process authenticate the products; even the end consumer can verify that what they have is genuine simply by using their mobile phone
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Hi Atim,Very nice post!
We should always use geniune car spare parts becuase fake car spare parts can cause various types of problems like cracked wheels,catastrophic engine damage,misfiring airbags,Brake failure and lots more. So my suggestion is that always use geniune car spare parts and be safe.You can find various types of geniune car spare buyers and sellers business listings here http://www.exportersindia.com/indian-suppliers/car-parts.htm
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This is a complicated issue. One reason this is less of an issue in the US an with our online auction sites is because, among other things, of a number of things we take for granted.For example, we use credit cards and generally trust in them and their use (even over the Internet), we have UPS and Fed-X to ship and they are reliable carriers, if things blow apart we have an established rule of law, courts, good judges, sheriffs that will take a court order and seize the bad guy’s assets to fall back on, etc.China is still developing these tools and items. For example, cash remains king in China in paying for things, not PayPal or credit cards. This will change and they will get there, but it will take time (but holy smoly are they moving fast). China remains a developing country/(huge) emerging market, the size of its population and economy notwithstanding.So, comparison between examples and markets (US and China or India) can be a good thing. Just keep in mind you are often comparing apples to oranges.Final point: Victory in business in China and elsewhere, more and more in the future, will go to those firms (including on-line auction firms in China) and people (such as yourselves with MBAs) who rely less on the traditional tools and weapons of IP registration, monitoring, go to the cops, enforcement, courts, lobbying, etc., and rely more on developing business models that are more attractive to various stakeholders than cheating. See, e.g., China hand David Wolf of the Silicon Hutong blog recent post, .This is the world you are entering into upon the completion of your degree. Exciting personal and business opportunities will abound as never before, but it won’t be easy. You will have your work cut out for you.
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Car spare parts business is one among the popular trading business in middle east. Genuine spare parts can always provide durability and reliability. Your blog is really informative.
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