Overall there are 7 segments in CV parts market.
1) Genuine Parts: Carry the logo of vehicle maker on the packing. Highest price in market. Vehicle maker have the ultimate right to decide list prices, which is very influential in parts market. Dealers can earn high margin if sell accordingly, the list prices mainly is targeted on listed company, MNC and government sector. Strong warranty and technical support provided by vehicle makers.
2) OEM aftermarket : Same factory with Genuine Parts but pack under factory brand. Mainly use to describe Japanese parts. Example: RIK, NPR, JKC, TBK etc. Generally sell at 70% of the prices of Genuine Parts. No list prices. Weak warranty support from factory due to distanced from manufacture country and no local office. Imported into Malaysia by trading house.
Both OEM and IAM are recognized as "OE Parts" at spare parts shop.
3) IAM ( Independent Aftermarket ) : Same factory with Genuine Parts but pack under factory brand. Mainly use to describe European parts. Example: Bosch, Valeo, ZF etc. Generally sell at 70% of the prices of Genuine Parts. These brands have local factory and office in Malaysia. Able to provide after sales service such as warranty claim, field service to diagnose parts, and also provide installation advice to mechanics. Imported into Malaysia by their own representative office.
Both OEM and IAM are recognized as "OE Parts" at spare parts shop.
4) Local Genuine Parts : Localized parts made by local factory which carry the logo of vehicle makers. The quality and after-sales service are endorsed by vehicles makers. Generally the pricing is 50% lower than genuine parts.
5) House brand: Replacement parts developed by distributors. Averagely selling at 50% of the prices of OEM parts. ( With warranty and technical support from distributors. )
6) White brand : Replacement parts imported by wholesaler with their own registered or not-registered brand, mainly from China, Taiwan, Turkey and India. Depend on their marketing strength, the prices are on par with House Brand or lower. Without warranty support but normally with goodwill replacement if found defect.
7) Counterfeit : Imitation parts which use imitated Genuine Parts packing with the logo of vehicle makers. Repacking by unknown distributors. Generally the price is slightly lower than Genuine Parts but with the quality of White brand.
For engine parts, a lot of them are repacked by using OEM parts as to ensure the quality since engine require high precision parts to operate. So instead of earning standard profit from OEM parts, these distributors are using imitation packing to earn higher profit from OEM parts.
In summary, the pricing from high to low is: Genuine > Counterfeit> OEM/IAM > Local Genuine > House Brand > White Brand
Therefore, don't buy counterfeit.
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