"Inter Cars" boss: grey market car parts expanding in Latvia
Grey market spare parts sellers are increasingly bypassing garage owners to deal directly with mechanics, says the head of "Inter Cars Latvija", warning of unfair competition.
Autospare parts grey market in Latvia is growing rather than shrinking, according to Kaspars Viļumsons, head of the trading company "Inter Cars Latvija". In an interview with Delfi, he said parts sellers are now trying to cut out auto service owners and make under-the-table arrangements with mechanics directly.
While such a scheme may mean lower prices for customers, it puts legally operating businesses at a competitive disadvantage, Viļumsons noted. He also revealed that the possibility of Inter Cars leaving the Latvian market has been discussed, and explained the company's considerations.
The grey market players are said to be increasingly active, deliberately approaching workshop employees. As a result, parts can change hands outside official channels, and workshop owners may not even know what components are installed during repairs. This creates risks for quality control and tax compliance, though Viļumsons did not give specific numbers.
Inter Cars Latvija is one of the largest auto parts distributors in the country, and its CEO's remarks indicate that the grey market has become a serious challenge for the legitimate sector. A lower price may look attractive to consumers in the short term, but in the long run it could mean a narrower choice and greater risks, he suggested.
The interview also touched on the company's possible exit from Latvia, though no final decision has been announced. Viļumsons outlined the factors that would make such a step conceivable, highlighting the pressure from grey-market operators.
The situation reflects a wider issue in Latvia's auto repair industry, where illegal trade undermines fair competition. Industry players and public authorities may need to find ways to curb the shadow market and protect businesses that operate by the rules.
