UAE: The auto companies have asked all their clients to beware of getting fake or cheap auto parts. It is because this not only affects their businesses, they also put motorists’ lives at risk. Recently, the UAE authorities have confiscated huge volumes of fake auto parts in raids. But there is a huge chance that there is a grey market that still exists.
Axel Dreyer, CEO of Galadari Automotive Group:
Stated that fake consumer goods worth AED 332 million are spread throughout the UAE, but it’s difficult to get the figure for automobile spare parts alone. The reason why they have such a huge market is that the customers tend to purchase these parts at a competitive price thinking that they’re genuine parts. However, they end up purchasing fake parts instead of genuine parts unknowingly. This not only affects the brand’s reputation but also has a huge impact on the business of the automaker and distributor.
It was also concluded that fakes cannot be totally eliminated from the market as they have never-ending demand. Therefore, the public sector, civil society and automobile firms have to consistently fight the battle against the counterfeit trade – mainly for the safety of consumers. Many executives, including the general manager of Al Masaood Commercial Vehicles and Equipment Division, Mohamed Nabih El Zeftawi, called for stronger cooperation between the public and private sector.
A lot of traders buy genuine parts from neighbouring countries and drop them here. The government is taking serious measures to control that. They want that only dealers should be allowed to sell auto parts authorised to them. Duplicate parts are a matter of safety for motorists and using duplicate parts puts their life at risk. It is something which must be taken very seriously.
El Zeftawi also:
Stated that not the entire grey market is selling fake parts; around 40 to 60 percent is genuine. And they look similar to the clients. Clients can’t really find much difference unless he/she is an expert. Yasir Ali Rajpoot, director of United Diesel and Lubricants, said the grey market is a concern for most of the industry’s players. The presence of a lot of competitors and fake products available makes it even more difficult. Therefore, the government has introduced certain regulations. Eventually, they are coming into effect and it helps the good manufacturer in the market. The importance of Patent is also being realized and many locally manufactured products would be distorted.
Rajpoot: pointed out that apart from fake parts; there are a number of lubricants in the grey market. There were only four to five manufacturers around 15 years ago. Now, there are more than 150.
Sheikh Najum Us Saqib, the owner and Managing Director of Najum Us Saqib Auto Parts:
stated that although there are many strict measures in place to combat counterfeits, yet many importers from other countries prefer to sell auto parts at much cheaper prices, regardless of the quality. With an example, he said,” An original plug costs AED 25 but you can buy a fake one for AED 7 or so. And the worst part is, the customers will never be able to distinguish between original and fake parts.”
