Prices of automobile spare parts in UAE rise

Automobile spare parts dealers and garages in the UAE are witnessing a shortage of supplies as most automobile factories in northern Japan has been closed following the devastating tsunami. Some traders told 'Emirates24|7' that the prices of some components have doubled already because though Japanese vehicles are manufactured around the world, most spare parts come from Japan.

Jofi Abraham, Manager, Koohiji Auto Spare Parts, said: “There may be a shortage of Japanese automobile spare parts and the situation may worsen after two months, when the current stock with dealers and garages are over. Japan is the main source of spare parts supply and some traders may misuse the situation to jack up prices.” He said the situation may worsen, if fresh shipment of spare parts do not come to the market in the next two months. There will be acute shortage of spare parts in the UAE market.”

Krishnan Pillai from Bluestar Garage, an automobile garage in Sharjah, said the prices of many crucial spare parts such as air-condition components and break pads have gone up substantially. “The price of set of break pad has gone up from Dh115 to Dh165. This trend is common for all other Japanese automobile spare parts. There is a clear shortage in the market. We scan various dealers and shops to purchase spare parts for Japanese vehicles.”  He said the shortage has been felt after the Japanese tsunami that destroyed many automobile plants and spare parts manufacturing facilities.
 
N R Mayin, Managing Director, Atlas Automobile Repairing, Rashidiya and Focus Auto Garage, Al Qouz said: “Seventy per cent of vehicles that we service are Japanese models. They need spare parts, especially in summer when many motorists face trouble with their air-conditioning and cooling systems. Until now, we haven't experienced severe shortage of Japanese spare parts, but we cannot predict the situation after one or two months.” He said the UAE automobile market has been dominated by Japanese brands and a shortage of spare parts could upset many motorists. He said the booking for new Japanese cars is delayed by at least one month and spare parts situation may deteriorate, if the plants are not reopened fully. Servicing of Japanese cars may take more than normal time.
 
Immediately after the tsunami hit Japanese cities where many automobile plants are located, Toyota, the leading Japanese automobile firm advised its dealers to keep a careful eye on their spare parts stock, warning that some parts suppliers are still not back to normal production. At least 233 parts numbers will be affected for at least 30 days, and both the numbers and time may increase, the company cautioned.

The parts short supply are mostly body panel and pillar subassemblies as well as shock absorbers, a Toyota memo said last month. Toyota said it will not fill routine orders to replenish dealer stock but will accommodate emergency requests when possible. A source in Al Futtaim Motors, dealers of Toyota Genuine Spare Parts said: “There is some delay in getting spare parts from Japan following the tsunami."
 
There has been a slowdown in car production for most manufacturers in Japan,  as the northern part of Japan that housed a number of car and engineering plants was hit by tsunami. Parts shortages is poised to become a major problem as even  other automakers are using Japanese spare parts,  market intelligence company IHS reported.
 
Some component plants affected by the disaster supply unique parts not only for Japanese-built cars but also for cars built in other countries. Unless a carmaker has two or three suppliers making the same parts, this production might not easily be shifted to other manufacturing locations. IHS said the possibility of interruptions at suppliers of critical components like transmissions, electric vehicle battery packs and electronic semiconductors are “extremely worrying". 

Sources in Nissan Middle East said they are updating customers about the spare parts supply position. Nissan, a major Japanese carmaker said on March 30 that its Iwaki Engineering plant will be operational by mid-April 2011. “As a result of corporate-wide restoration activities, Nissan is now capable of resuming normal operations at all of our Japanese plants except for the Iwaki Engine Plant. We are aiming to resume normal operations at these facilities from mid-April. Currently, we are in production using our available inventory. Going forward, we will start receiving parts from our suppliers and resume normal operations.” 

“However, as the delivery of parts will still take time to be fully reestablished, operation levels will be limited, depending on the delivery status from suppliers. Nissan will continue to provide necessary support to our suppliers to ensure their swift restoration to normal levels.”
 
 
 

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