Blockchain Can Solve The Spread Of Counterfeit Auto Parts

Blockchain, Crime | August 24, 2018 By:

Genuine auto parts are expensive, so many people try to find cheap parts online. This results in a very large counterfeit market for aftermarket auto parts, which consists of cheap, low-quality and fake parts. It is valued at nearly$12 billion every year.

When it comes to a fake pair of jeans, t-shirts or sneakers, people are mostly concerned about wasting their money on something that truly looks fake. However, when automotive parts are fake, it is a completely different game. Automotive parts are usually underneath the hood or underneath the car itself, so people don’t realize when someone’s car has counterfeit parts. Though fake parts don’t have the same social consequences that fake clothes do, there are a lot of physical consequences that one can face when counterfeit parts fail to perform correctly. Low-quality, counterfeit auto parts endanger the lives of many on the road.

Based on information gathered by the National Intellectual Property Rights Coordination Center, bogus aftermarket parts can be life-threatening. For example, there have been recorded cases of counterfeit airbags that have exploded and caused severe burn injuries to the driver. Additionally, counterfeiters manufacture such everyday auto parts as fake clutch housings, brake pads, controls arms, ignition coils, and windshields.

Sometimes it is unclear whether it is the counterfeiters or the brands that are involved in the counterfeiting of automotive parts. For example, authorities recently confiscated over 10,000 car parts meant for Nissan vehicles coming from the Middle East. There is something that doesn’t add up.


Buying fake auto parts just because they are cheap is a mistake. If a dishonest auto mechanic shop is buying fake parts to save on costs, they are putting the lives of the owner and other drivers in danger.

Here is how:

Fake Parts Are Defective

When an auto part is cheap, it is usually made of low-quality materials. However, the issue of defectiveness is completely different from the issue of low quality. Defective parts can malfunction. For example, a defective airbag can explode in the driver’s face and cause serious injuries, even leading to death in what could have been a minor accident.

Fake Parts Are Not Durable

The idea of saving upfront costs is quite alluring. However, when one buys fake parts they are trading a short-term benefit for a long-term loss. A genuine part can survive for several years whereas a fake part begins to fail within a much shorter time period. One might save a few bucks initially on a fake part, but will end up costing more in time and money to repair and require more frequent maintenance due to the substandard nature of the counterfeit auto parts.

A blockchain-based solution for the aftermarket auto parts industry can correct these problems. From fake medicines and apparel to counterfeit aftermarket auto parts, customers can use smartphones to scan an aftermarket part and instantly know whether it is authentic. By identifying the item at the time of purchase, customers will have the ability to authenticate and purchase genuine products. Even in an auto repair shop, it can show proof of using authentic auto parts. 

 Counterfeiting has grown in the past decades regardless of the industry, and it is not limited to the dangers in the aftermarket auto parts industry. Through the implementation of blockchain-based solutions, consumers can have confidence in purchasing authentic products.