Tyres on display at an autoparts shop in Beijing, China. The sale of counterfeit parts is a major problem for the car industry in the UAE.
Tyres on display at an autoparts shop in Beijing, China. The sale of counterfeit parts is a major problem for the car industry in the UAE.

Fake parts bedevil UAE car industry



The sale of counterfeit parts continues to plague the car industry as well as putting the lives of drivers at risk, manufacturing executives say.

"If you have defective parts in a car, it is life and death," said Tim Green, a marketing director at NSK Europe, one of the world's largest manufacturers of bearings and steering systems for cars. "You have to guarantee the safety and if you don't guarantee the safety then it is people's lives."

Consumers are advised to request information on any part fitted in their cars during a service and to ask for the packaging to prove it is genuine.

Because many parts that are seized in the UAE are destined to be sent abroad, the size and penetration of the counterfeit market is difficult to measure.

Although Dubai Customs officials last year seized 75 per cent more shipments of counterfeit goods, including car parts, compared with 2009, Mazen Ghanem, the marketing director at Bosch Middle East, said these seizures were just the "tip of the iceberg" and that the number of fake parts in cars in the Emirates was a "significant" proportion of the spare parts market.

The legal market for spare parts was worth Dh32 billion (US$8.71bn) last year, and grew 11 per cent to Dh8.4bn in the first quarter of this year from a year earlier, according to data released yesterday by Dubai Customs.

"We only see a small amount of the total counterfeiting," said Mr Ghanem. "Dubai Customs is very supportive and the situation is improving, but they cannot check each and every container that comes in to Jebel Ali, this is the problem."

Mr Ghanem said Bosch had recently intercepted car brake pads that were partly made of wood and could spontaneously combust as the brakes were applied. The pads were destined for Europe.

"Some parts even use wood inside the brake pad so that when it is overheated this will create flames, this is how dangerous counterfeiting is," he said.

As a strategic hub for goods to be imported and re-exported, Dubai is a crucial battleground in the fight against counterfeit car parts as well as other goods. According to the latest figures from the European Commission, the UAE is the second-most common source of counterfeit goods seized in Europe, after China. About 14.6 per cent of all fakes detained in the EU in 2009 came through the UAE, up from 12.3 per cent in 2008, according to the commission. "There's a lot of money to be made counterfeiting and it is encouraged in certain countries, because there is spare capacity," said Mr Green.

"There are not enough measures in place to prevent it from happening." In response to growing anxieties over counterfeit car parts worldwide, Bosch has launched a consumer protection website, where customers can enter the 15-digit serial number on the manufacturer's parts to check the authenticity.

"We are trying our best and trying to protect customers," said Mr Ghanem. "You can never stop these guys."

The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

T20 World Cup Qualifier fixtures

Tuesday, October 29

Qualifier one, 2.10pm – Netherlands v UAE

Qualifier two, 7.30pm – Namibia v Oman

Wednesday, October 30

Qualifier three, 2.10pm – Scotland v loser of qualifier one

Qualifier four, 7.30pm – Hong Kong v loser of qualifier two

Thursday, October 31

Fifth-place playoff, 2.10pm – winner of qualifier three v winner of qualifier four

Friday, November 1

Semi-final one, 2.10pm – Ireland v winner of qualifier one

Semi-final two, 7.30pm – PNG v winner of qualifier two

Saturday, November 2

Third-place playoff, 2.10pm

Final, 7.30pm

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5