Japan Says 83% Counterfeit Parts in China, Global Sales Estimated at US$45 Billion
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According to the Japan Automobile Parts Association, 83% of global counterfeit parts products are in China. According to estimates by Frost & Sullivan Consulting, the global sales of counterfeit auto parts are estimated to reach 45 billion U.S. dollars (307 billion yuan), which is several times more than the 82 billion yuan in 2008. In contrast, Taiwan and Thailand account for 5% of global counterfeit auto parts, and Japan and Malaysia account for 2%.
According to the "China Automotive News" release, despite repeated attacks by the police and the government, the production of illegal counterfeit auto parts is still banned, accounting for about 20% of the Chinese aftermarket. Counterfeit auto parts are generally after-sales products with large demand, such as spark plugs, brake shoes and steering parts.
Alex Ashmore, head of TRW Asia Pacific aftermarket, said that fake brake pads and brake discs have taken away at least 20% of TRW's business.
Some counterfeit companies also produce technically complicated parts. Ashmore said: "We have also found counterfeit airbags in China."
Ineffective
Corteco China's annual sales of oil seals in the Chinese market account for 5% of the 30 million aftermarket oil seal market, but the company's Vicky Chan said: "If there are no counterfeit products, our oil seals can account for 25% of the market share."
Corteco's oil seal costs $45, but counterfeit seals cost only $20. The use of low-grade rubber and metal for counterfeit oil seals can cause leakage of oil and make the car performance unstable.
In 2010, the government shut down a factory in Guangzhou that produces counterfeit Corteco oil sealers.
Fake factories have been active in the market for almost a decade. Chan said: "We shut it down every year and they soon reopened."
In 2008, counterfeit factories can produce 7 million oil seals annually. In 2011, the seal capacity of counterfeit factories reached 10 million.
Countermeasures
In order to crack down on counterfeit parts, suppliers began to tag radio frequency identification tags on their products, and TRW's Ashmore said: "In 2011, 90% of our product packaging will have an identification tag."
Suppliers also formed quality brand protection committees to fight counterfeit products. The committee worked with the government and the police to crack down on counterfeit factories.
But even if the police shut down a certain factory, it is just a fake part of the production site.
Skymore’s Ashmore said: “All counterfeiting companies are now 'smart' and they have 3-4 trading companies.â€