25% auto parts are counterfeit
Almost 20 to 25 per cent of all automobile spare parts sold in the UAE are counterfeit, according to officials involved in tracking such products.
There has been a massive catch of counterfeit spare parts following simultaneous raids on auto parts retailers across the UAE.
Sajjad Pasha, National Sales Manager, Al Futaim Motors said such parts are being imported into the UAE from South East Asia and packaged here before they are sold in the local market or re-exported to other countries.
The most common origins of illegal parts seized within the UAE were from China, Taiwan, Turkey, Korea and Malaysia.
About 30,000 pieces of counterfeit spare parts were seized following raids by officials from Toyota Motor Corporation along with the Department of Economic Development of the Abu Dhabi, Dubai and Sharjah.
The raids were conducted across ten days in 27 shops across the three emirates.
Hatem Abdel Ghani, Director & Head of IP Enforcement in Al Shaali & Co, Advocates & Legal Consultants however said the retail counterfeit part market has decreased by 60 per cent between 2008 and 2011 due to the extensive sweep raid missions conducted by various car brands.
However the wholesale sector continues to remain the same.
“The exact counterfeit market cannot be defined, as the authorities usually act upon requests from Car brands, and not all brands are similarly active. However the counterfeit market is estimated to be between 20 to 25 per cent of the auto parts market,” said Ghani.
According to Pasha half of all road accidents in Saudi Arabia that resulted in deaths were caused due to use of counterfeit parts.
According to him customers went in of counterfeit because it was cheaper by about 20 to 30 per cent.
According to estimates, automobile manufacturers from across the world have lost almost US$700billion due to counterfeit spare parts.
A Brand Owners Protection Group study revealed that car parts alone amount for 69 per cent of all fake goods in the UAE, based on market value and volume.
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