Subject 1st certified replacement car part released
Upload date 2015-07-23 Source MOLIT News

1st certified replacement car part released


- Alternative BMW5-series aftermarket fender released,
Cost burden of using expensive OEM parts for imported cars will be eased -


□ The 1st aftermarket car part certified by the Korea Automobile Parts Association(KAPA) will be released on July 13. The replacement part is the first certified aftermarket part since the 'Replacement Part Certification System' was introduced in January this year.

ㅇ The aftermarket part is the fender for BMW5-series sedans and produced by TYG, a Taiwanese auto parts company. It becomes the first replacement part in the country that passed rigorous quality and performance tests conducted by the Korea Automobile Insurance Repair Research & Training Center, and be certified by KAPA.

ㅇ The certification of the TYG replacement part will mark the start of a series of launches of certified aftermarket parts with OEM equivalent quality and more competitive prices. For instance, the TYG part certified this time has been certified by CAPA* in the US.
* Certified Automative Parts Association
** OEM(Original Equipment Manufacturing): When referring to car parts, OEM refers to parts and manufacturers involved in the final assembly of a vehicle.

[What is ‘Replacement part’?]
Replacement parts are automotive parts built or remanufactured to replace OEM parts, which are used in the assembly of a new motor vehicle, when OEM parts become worn or damaged. Quality and performance of replacement parts are same as or equivalent to those of OEM parts.

[What is ‘Replacement Part Certification System’?]
The 'Replacement part certification system' is a system that allows aftermarket car part manufacturers to apply for certification by the accredited certification agency to evaluate and certify the quality and performance of replacement parts. The system is designed to encourage consumers to use certified aftermarket replacement car parts.

□ So far in Korea, OEM parts have been dominating the repair parts market, and imported cars have been criticized for charging car owners too much to replace parts.

ㅇ As a result, the Ministry of Land, Infrastructure and Transport (MOLIT, Minister: Yoo ILHO) amended the Automobile Management Act (January 2014), and in January this year implemented the system to examine and certify the quality of competitive aftermarket parts. The change is to promote the replacement parts market so that customers can use less expensive but reliable non-OEM replacement parts.

ㅇ A certification seal will be attached to replacement parts that have passed quality tests by the Korea Automobile Parts Association (KAPA), to distinguish certified parts from cheaper copycat products.

ㅇ The Korea Automobile Testing and Research Institute(KATRI) will monitor whether the performance and quality of certified parts comply with Article 40-11 of the Enforcement Decree of the Automobile Management Act. If certified parts fail the KATRI tests, then their certification will be forfeited.

ㅇ In addition, manufacturers are responsible for any damage and injuries their replacement parts cause. To ensure that, manufacturers are obliged to submit a copy of a product liability insurance policy to acquire certification

□ KAPA(Korea Automobile Parts Association) said it reviews 40 kinds of exterior components and lamps which are the most commonly used parts for repairs but do not compromise the safety of a vehicle.

ㅇ KAPA has completed documentary and factory reviews of replacement parts of 10 manufacturers, and is conducting product tests. Starting with the TYG BMW5-series fenders, alternative replacement parts for other makes and models manufactured by Korean and foreign firms will be released to the market.

□ The automotive aftermarket parts market will thrive as new insurance policies provide either lower premium options using certified replacement parts for repairs or refund of the price difference between OEM and certified non-OEM parts after repair are to be developed soon.

ㅇ Consumers will be able to save repair costs substantially by using less expensive, high quality certified parts.
* According to the Property Casualty Insurers Association of America, exterior components formed a $56billion market, with aftermarket (non-OEM) parts accounting for $5.2billion, in 2013 in the US, while consumer benefit from using aftermarket parts amounted to $2.34billion.

ㅇ Moreover, the Replacement Part Certification System will help small and medium-sized Korean manufacturers advance into the domestic and international aftermarket parts markets with their own brands when the system is fully implemented.

□ Director general Kim Yong Seog for motor vehicles policy of MOLIT said, "'the 'Replacement Part Certification System' will help broaden customers' options as well as reduce repair costs while promoting small and medium-sized automobile part manufacturers."

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