OF THE MILLIONS of car spare parts sold in Britain each year, it is believed more than 10 per cent are counterfeit. These fakes are apparently on the increase, despite stringent measures by anti-counterfeiting organisations, trading standards officers and the original equipment manufacturers, to stamp out the illicit trade. In Hong Kong, the trade is less developed, but fake parts are finding their way into our cars, sometimes without the owners being aware of the safety and reliability implications.
The Auto Parts Management Association (APMA) maintains that its members only use genuine parts, obtained from their respective vehicle manufacturers. But in the back streets of Mongkok or Wan Chai, it may be a different story. Chairman of the APMA, David Lam, says it is not yet a serious problem, as Hong Kong Customs and Excise is stringent in its checks. Most counterfeit parts are from the mainland, Malaysia and Taiwan, and they mainly target Japanese brands.
Lam adds, however, that franchised dealers face a great deal of competition from parallel importers, which source parts from other countries for import into Hong Kong. The Japanese motor manufacturers have, he says, formed an association to try to stamp out the practice of these so-called grey imports.
Managing director of Commercial Trademark Services, Tony Gurka, a specialist in intellectual-property protection, has been involved in counterfeit investigations since the early 1970s. Gurka maintains that virtually every successful product will have been counterfeited at some point. Car parts and aircraft spares have traditionally been produced by counterfeiters in Taiwan, South Korea and the Philippines. In the early 1990s, the price of genuine parts for European brands was so high it encouraged counterfeiting. It is not so prevalent now, as the price of genuine parts has dropped dramatically, all but eliminating the profit margins for counterfeiters.
However, the output of these spares from the mainland has increased dramatically in recent years. Although it used to be focused on local car parts, fakers over the border are starting to aim at international brands. Brake components, pistons, valves and alloy wheels are all common components likely to be produced by non-approved manufacturers. Wheels, says Gurka, may appear identical to the original, but can often fail, causing an accident. Even tyres have been known to be produced by non-approved manufacturers.
One trick often used is to combine genuine spares with the fakes. In the case of brake pads, says Gurka, the wholesaler may mix genuine boxes with counterfeit items. In most cases, the garage or repairer may not know and low-quality plastics or metal alloys are used in the manufacturing process. Often, holes caused by casting defects can weaken the component, while in the case of brake materials, they are often of a sub-standard material which is likely to fail as brake temperatures rise.