Abdul Latif Jameel Motors: “More than 360 Million Imported Counterfeit Spare Parts Have Inflicted Major Losses on the Economy”

Experts in the Saudi automotive industry confirmed that the sector suffered approximately SAR2 billion in losses due to the dramatic increase in counterfeit spare parts in the local market. This worrying proliferation of fraud and counterfeiting negatively impacts not only the automotive sector, but the economy and the consumer.

During the recent “Risks of Counterfeit Spare Parts” workshop organized by Saudi Customs, Engineer Fathi Khoja of Abdul Latif Jameel Motors addressed the attendees, saying: “Data gathered by Saudi Customs indicates a significant increase in seizures of counterfeit goods. In 2008, almost 2.4 million counterfeit parts were seized, while 2014 witnessed the seizure of over 109 million counterfeit spare parts. This situation demands that we fully re-examine consumer convictions and educate the consumer about how such frauds are perpetrated and the strategic importance of consumers in combating the counterfeiters.”

Khoja noted that Saudi Customs has made serious efforts to curb the trade in counterfeit parts and to punish those who violate the Kingdom’s intellectual property laws. He emphasized the importance of making concerted efforts to combat these violations because the consequences of using such parts can be serious. Records show that over 20 daily fatal traffic accidents occur partly because of the use of counterfeit parts, which generally fall far short of standard safety and quality specifications.

Khoja explained that Abdul Latif Jameel Motors has created an integrated warehouse system that supplies original spare parts to consumers wherever they may be in the Kingdom. The system utilizes the company’s huge central warehouse in Jeddah comprising 50,000 m2. One of the largest warehouses in the region, the facility operates using an advanced system that provides maintenance centers and suppliers across the Kingdom with genuine spare parts. He went on to say that the number of spare parts stored at the warehouse reached 48 million in 2015.

The central warehouse is currently operated by highly skilled calibers, who apply Toyota’s operating principles and techniques, ensuring the continuous genuine spare parts supply to the Saudi market, to satisfy its customer needs. Also by applying the continuous improvement concept of Kaizen, the warehouse was able to maximize the utilization of its capacity, achieving an immediate delivery rate of 98% during 2015. 

The workshop, which involved the interaction of a wide range of participants, included a review of a number of genuine Toyota parts and their counterfeit equivalents. It also highlighted details that may be undetectable with the naked eye but which are telltale signs of fraud. There are many ways to identify counterfeit Toyota spare parts, including examining packaging material, inspecting the logo as well as the typography and print for defects, examining the packaging method or inspecting the quality of the spare part in terms of proper rigidity, flexibility and texture.

In closing, Khoja emphasized that reporting any parts dealer suspected of selling counterfeit parts or accessories amounts to a shared national duty to work for a Saudi society free of fraud and counterfeiting. He also explained that Abdul Latif Jameel Motors works in close cooperation with various government entities in order to protect both its brand and the consumers who rely on it. The government bodies include Saudi Customs, the Ministry of Commerce and Investment, and the Consumer Protection Association. Together, these entities work with Abdul Latif Jameel to increase consumer awareness of the risks of counterfeiting and the negative impact they exert on consumers and their families, as well as the national economy. The company is also keen on providing technical support and diagnostics for determining genuine products, in addition to the coordination with a number of Toyota’s brand protection agencies. 

The renowned relationship between Toyota and Abdul Latif Jameel was established more than half a century ago, and has grown to become one of the leading automotive forces in the Kingdom. Abdul Latif Jameel is also one of the largest independent certified Toyota dealers in the world. As per its principle of putting the guest first, and its commitment to achieving excellence in all it has to offer, Abdul Latif Jameel Motors supports the widespread use of Toyota vehicles in the Saudi market through an extensive network of sales and maintenance centers strategically located around the Kingdom to provide peace of mind for their guests, wherever they may be.