Anyone of a more mature age in the repair business may well remember the dubious ‘Made in Japan’ labels affixed to products during the 1950s, with a similar scepticism of Taiwanese goods some 30 years later. Once cheap and cheerful but of questionable quality, nothing could be further than the truth from both countries these days. So is it time China and India are also given a break?
Dodgy replacement parts have always been around in the motor trade and perhaps always will be, bearing in mind significant price variations on seeming identical parts. Indeed a recent survey commissioned by the government’s Intellectual Property Office (IPO) found that one in six motorists said they have purchased a counterfeit part in the past 12 months – and shockingly over half those quizzed admit they did so willingly, contributing to a growing black market which, in the UK, is said to worth a £1billion each year.
However, there’s a world of difference between counterfeit components and respected brands which simply manufacture their parts in countries such as China for economic reasons.
Several big names have set up manufacturing bases in China, such as TRW Automotive and OSSCA, while Bosch has a foothold in both countries. It has been produced OEM components for many car manufacturers, including BMW, for many years.
Stats show that the Chinese automotive export market topped $75billion (£58bn) three years ago and India is fast catching up. According to a report by eletimes.com, India has emerged as a prominent global force in part due to the country’s low labour costs and being the world’s second-largest steel producer.
“The Indian Auto Component industry is witnessing remarkable growth in its exports. Projections indicate that by 2026, these exports are anticipated to surge to an impressive $80 billion”, it claims, with the USA, Germany, the UK, Thailand, and Italy being the main markets.
The report goes on to claim that the Indian aftermarket export business, comprising battery, tyres and brake parts, is set for a massive growth and expected to top $32 billion by 2026 – a 300% increase since 2020.
Two standout Chinese parts suppliers with OEM credentials are Denso and OSSCA. The former was launched in 1949 and historically enjoys links with Bosch and Toyota and now serves all the world’s major carmakers. Worldwide, the company, valued at $45.1billion, has around 200 subsidiaries and boasts inventing the platinum and iridium-tipped spark plugs; permanently engaged Stop-Start starter motor; flat blade wipers – and even QR codes.
Both GSF and LKQ, who retail parts sourced by Chinese suppliers, seemed rather reluctant to speak to CAT on the subject although both imply that so long as the quality is right and meets their respective standards they have no qualms, and it of course keeps their prices competitive. “We have complete trust in them”, said James Onions, GSF’s marketing and communications director. Anthony McAteer, Group Procurement and Category Director at LKQ Euro Car Parts feels they will increasingly play an important new role in helping securing competitively-priced replacement spares for EV repairers.
“Developing affordable repair solutions is critical to the EV transition. Parts availability – OEM and aftermarket – is fundamental and so are skills and equipment: all areas in which we are leading the way. We have already developed a market-leading range of EV parts, subject to the same quality criteria as our core range, and it’s growing all the time. And our inventory and logistics capability are such that can play a key role in opening up parts distribution networks for new overseas manufacturers; these are conversations we’re actively engaged in.”
Yet despite all this, the stigma of using parts originating from Asia remains and the The Independent Automotive Aftermarket Federation – the UK’s trade association for vehicle parts manufacturers, importers and independent wholesale distributors and independent garages, formed in 1930 – is still deeply concerned about the flood of fake parts infiltrating the UK garage trade.
Having said that, the IAAF admits there’s now a clear distinction between the good and the bad regarding quality and dependability.
“For at least the last 10 years, Chinese manufacturing has changed under the influence of western economy companies who control the design and manufacturing standards of their branded products which are being made in China. Apple iPhones are a good (consumer product) example. At the other end of the spectrum are very low cost products which are not premium branded and principally sold on price. The quality and function of these parts are often suspect.
“The IAAF has been involved in the increasing issue of illegitimate and fake matching quality replacement parts. In particular, there is a growing issue of counterfeit parts, as well as parts which require to be type approved, but although being marked and sold as being type approved, when tested were clearly not to the required specifications,” IAAF Chief Executive Mark Field told CAT.
“These parts should be of a good quality, as well as fitting and working correctly, but this is often not the case. The issue of selling products fraudulently, as well as the issue of warranty should the fake product not fit or work correctly, creates significant problems for both the workshop and the customer.
“There is also a wider issue of low cost replacement parts simply sold on price, but which can cause significant issues when they fail to work correctly, such as oil filters or wiper blades. Low cost, often poor quality replacement parts, satisfy the demand for the cheapest repair solution. The key issue is ensuring that only legitimate, quality replacement parts are sold and fitted to customer’s vehicles.
“In support of this, the IAAF is working with its members and the UK’s market surveillance unit to provide evidence of counterfeit products, as well as the revision of its Code of Conduct to help support its members to identify and supply only legitimate products”.
Truly, has it now become a case of what you buy, and not where you buy it from?
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