Middle East vehicle spares sales exceed eight billion dollars annually, according to a recent report from the United States’ Foreign Trade Department. Industry sources estimate fake parts account for about 20 percent of the market, or $1.6 billion, equal to the value of Dubai’s automotive aftermarket re-export trade.
Government action to combat fake automotive parts and safeguard the United Arab Emirates (UAE)’s regional trading hub status is urgently needed, Anwar Gargash, chairman of the Dubai Chamber of Commerce and Industry (DCCI)’s Motors Committee, warned today.
In an interview, coinciding with the 8th Automotive Aftermarket Middle East (AAME) exhibition—Dubai’s annual international trade show for automobile parts, accessories, tires batteries and garage equipment—Gargash said failure to tackle the problem is undermining efforts to attract foreign investment.
Urging both distributors and manufacturers to lobby on the issue, Gargash said the autoparts industry should mirror the successful fight against counterfeit computer software. “Not enough major manufacturers have put their weight behind the campaign to rid the UAE of fake auto parts,” he said.
“Visiting chairmen and CEOs should raise this issue in their talks with senior officials. We must take the fight to the highest level of government. There has to be a genuine realization that it is not in the interests of the UAE business community, or the country’s international image, to be lax about this problem,” added Gargash.
“It affects the investment climate and impacts adversely on efforts to build a reputation for quality. It is OK being tough on counterfeit videos and computer programs but safety related auto parts should be a much more serious concern.”
Criticizing administrative and legal systems as “time consuming and cumbersome”, Gargash said the prosecution of counterfeiters should be fast tracked. “There needs to be a special team capable of tackling the menace at the points of entry and sale supported by commercial courts dealing with cases quickly and penalizing the guilty.
“Consumers do not expect to walk into a supermarket and find fake milk or fake corn flakes on the shelves. Why then should they be exposed to counterfeit parts that endanger their lives?” asked Gargash. International Expo-Consults (IEC), organizers of AAME 2003, have outlawed counterfeit parts from the show.
AAME 2003, that being held at the Dubai International Exhibition Center, concluded May 8. It is 30 percent larger than the 2002 event and features over 150 vehicle spare parts, component and accessory companies, from North and South America, Europe, the Middle and Far East and Australasia. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
