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Track, Trace, Monitor: Counterfeiting Is A Huge Issue for Automotive Aftermarkets Brands. How Is Technology Helping In Combating This Menace?

Created on May 14, 2021

The global automotive industry is huge, with all the players (manufacturers) in the industry bringing in a total of $5.3 trillion in 2017, a composite revenue that is projected to reach a little below $9 trillion by 2030. However, the industry is largely affected by counterfeiting as the sales of counterfeit automobile parts flood the internet.

According to the Automotive Anti-Counterfeiting Council (A2C2), sellers of automobile parts in America has seen their losses due to the sales of counterfeit parts on online stores rise from $12 billion annually in 1997 to almost $45 billion in 2011.

The danger associated with the counterfeiting of automobile parts

It is estimated that about 1 in 3 people across the world uses a car or a commercial vehicle every day. In 2015 alone, there were 947 million passenger cars and 335 million commercial vehicles on the road. Automobile parts such as airbags, wheels, tires, brakes, and other vital automotive parts have been counterfeited and marketed mostly online.

Some of the ill effects of unknowingly using counterfeit afterparts include but are not limited to:

  • Quick tear and wear of the automotive parts.
  • And if the worn parts are not replaced on time, it could lead to a car crash.
  • People’s dear lives could be lost in the process.
  • The users of the counterfeit parts would have lost money purchasing poorly made parts.

Global Instances of Counterfeit Automotive Afterparts


In October 2015, it was reported that thousands of counterfeit wheels manufactured in China are on Australian roads. The Japanese Security Agencies are working round-the-clock to stop the importation of fake car parts into the country from China. Annually, Toyota, a leading Japanese automakers losses between $210 million and $320 million a year to Chinese counterfeiters. The same issue is occurring in South Korea and other nations. In India, for instance, the sales of counterfeit automotive parts is on the rise. In 2012,

the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS) special agents arrested and criminally charged two metropolitan Detroit residents for running a trafficking scheme that was bringing counterfeit airbags to the United States.

How technologies like Tagging and Blockchain Can Prevent Counterfeiting

It is now evident from the facts detailed above that the counterfeiting of automotive afterparts is a problematic phenomenon that requires urgent and the most effective solutions. Interestingly enough, the application of tagging and blockchain technologies have proved to be very useful in eradicating the headache of product counterfeiting.

Anti Counterfeit

The good news is that with the application of both Artificial Intelligence (AI) and Blockchain technologies it is possible to fight automotive parts’ counterfeiting to a screeching halt. This procedure involves creating protecting codes that can be placed on automotive parts like barcodes using algorithms. And the protective barcodes are readable on almost all devices using the Internet of Things (IoTs) applications.

More so, the data from the barcodes that confirms the authenticity of the automotive parts being sold at the point of sales can be quickly and globally distributed on the highly decentralized blockchain ledgers in real time.It may seem expensive for automotive manufacturers to set up their on-premises AI and blockchain infrastructures. Therefore, working with an integrator or integrating firm is the best practice at the moment.

NetObjex, as an integrating platform, has partnered with Zortag (attached the PR) to work with brands that are looking at battling the counterfeiting menace. NetObjex platform streamlines the perpetuation of brand identity for automotive parts’ manufacturers by making sure that their products are protectively coded, making it expressly difficult for counterfeiters to replicate them.

Final Word

NetObjex makes it possible for the manufacturers of automotive to track, trace, and monitors their products from time to time, collecting useful data that could be used in making informed decisions about production quality, customer service, pricing, and other vital business decisions. In addition to that, the perennial losses incurred by automotive brands to online stores that market counterfeited automotive parts will be drastically reduced or outrightly eliminated.

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