RFID applications in the automotive industry

Counterfeit goods are one of the biggest financial challenges facing the automotive industry today. Counterfeit parts account for 10% of all auto parts sold, equivalent to the industry's annual counterfeiting costs. Because counterfeits are designed to be as close to the original as possible, even mechanics and other professionals can identify them at a glance.

There are two types of counterfeit goods currently available. The first type comes from companies that copy the original product without permission. Good counterfeits are difficult to distinguish from the original, as mentioned; they can even fool skilled mechanics. The second type comes from approved manufacturers. These manufacturers are the official suppliers of replacement parts. In this case, checking the serial number, if available, is the only way to identify a counterfeit. This procedure is time-consuming and not supported by dealers.

Another crucial factor facing the automotive industry is "brand authenticity." Counterfeit goods have a significant impact on the automotive parts business, contributing considerably to the overall profits of manufacturers.

Legitimate manufacturers invest heavily in product research and development and manage their reputation with customers; counterfeiters try to profit from business under this guise. Money and profits lost due to unfair competition quickly translate into low wages, job losses, and high value for customers.

The good news for the automotive industry is that solutions are now in place to protect companies, as well as their shareholders and customers.

RFID technology and its unique counterfeit detection features can make a huge difference in the fight against financial losses. All suppliers have to do is ensure that their parts have RFID tags on their products and that all critical information is stored on the chip. This will allow for tracking the product to prove it is genuine.