Counterfeit batteries are costing legitimate manufacturers in the EU around EUR180 million ($221m) in lost business every year, according to a new report.
The study, from the European Union Intellectual Property Office (EUIPO), said counterfeit batteries mostly affect the vehicle sector, but are also found in the mobile phone market.
On top of the economic cost, the study said the fake products are putting consumers at risk, because safety features “are sometimes absent from counterfeit batteries”.
According to the report, with car batteries “representing about three quarters of the total value of batteries produced in the EU”, sales lost to counterfeiting annually are estimated to be EUR32m in Spain, EUR31m in Germany, EUR27m in France, EUR18m in Italy, EUR13m in the UK and EUR6m in Poland.
Batteries covered included primary cells and primary batteries plus lead-acid, NiCad, NiMH, lithium-ion, dry-cell and wet-cell batteries.
The report said the market for production of batteries in the EU in 2015 was estimated to be worth EUR10bn and “total consumption reached EUR12.5bn once the EUR2.5bn of net imports were added”.
EUIPO’s report, which looked at the economic impact of both batteries and tyres, said lost sales “translate into approximately 8,400 jobs lost directly across the two sectors, as legitimate manufacturers employ fewer people than they would have done in the absence of counterfeiting”.
The report— one of a series of 12 into counterfeiting and piracy across a number of sectors— did not comment on the likely origins of the counterfeit batteries. An EUIPO spokesperson told BBB the purpose of the study was to look only at the economic impact on sectors “known to be vulnerable to counterfeiting”.
EUIPO executive director António Campinos said: “As fake tyres and batteries can have significant safety and environmental consequences, we also hope (the report) will help consumers to choose wisely when purchasing these vital items.”