Fake Parts Prevalent in Middle East
Sept. 22, 2017—Fake parts have begun to strangle the auto industry in Iran, according to a Financial Tribune report.
“Even local producers cannot differentiate the real from the replica” parts, said Alireza Nikaeen, head of the Tehran Auto Mechanics Association. “No one can detect the fake parts without the benefit of time-consuming tests.”
Unregistered Iranian businesses have undertaken production deals with Chinese auto part makers and seen the Asian businesses produce shoddy copies of Iran-made parts and package them. Nikaeen noted that the profit margin of importing fake parts is three times more than investing in local manufacturing. What’s more, low production rates have helped render Iranian auto parts manufactures unable to compete.
Nearly 8,800 auto repair and maintenance shops are operating in Tehran, of which only 4,800 are members of the association. Nikaeen says in the past two years 1,800 unregistered shops were ordered to be shut down by the association in collaboration with law enforcement.