CHENNAI: The Rs 22,000-crore counterfeit auto components industry — growing quicker than vehicle and motorcycle income doubled in the closing 5 years — is giving headaches to unique equipment manufacturers (OEMs). They are now hoping that the draft rules to eliminate spurious spares, which had been notified in July, gets operational soon.
According to the Authentication Solution Providers’ Association (ASPA), India’s overall counterfeit product enterprise is well worth Rs 1 lakh crore, inflicting government tax losses of Rs 40,000 crore. While faux products are commonplace in agriculture (fertilizers and insecticides) or even FMCG, they may be existence-threatening in the car and pharmaceutical industry, said ASPA president Nakul Pasricha.
“Counterfeiting is a massive hassle in the automobile components after-marketplace section,” said Pasricha. “The general automobile after-market in 2018-19 grew by 9.6% to Rs sixty-seven,491 crores ($10 billion) from Rs 61,601 crores ($nine billion) in the previous economic. Counterfeit vehicle additives account for 30-40% of the overall after-market for components in stores.” Apart from income loss, there are also lives lost. “An excellent 20% of all automobile accidents in India are attributed to counterfeit automotive parts and, in line with a Ficci-Cascade report, counterfeiting in the auto zone affects tax revenue lack of approximately Rs 2,200 crore to the government,” said Pasricha.
The top sectors fighting counterfeits are alcoholic beverages, vehicle additives, pc hardware, FMCG, cell phones, and tobacco. While the problem is critical in car parts, in FMCG, too, the counterfeit product percentage is as high as 30%. This grey marketplace is both locally- and import-pushed. “There are fly-by means of-night operators making them in India, and a few components of these counterfeit auto elements additionally come in from China,” stated Pasricha. The boom in the used car/SUV/two-wheeler market has further exacerbated this problem. “As cars become old, customers are much more likely to search for less expensive options to OEM components and consequently generally tend to get exposed to spurious alternatives,” stated Pasricha.
OEMs, of course, behavior ordinary raids on traders and manufacturers dealing in counterfeit components. A recent raid by way of Honda Motorcycle & Scooter India across north and east India brought about the seizure of “counterfeit goods worth Rs 49 lakh in the last month”. He introduced, “In the last 3 years, the Honda highbrow belongings rights enforcement group has seized ninety-four,000 counterfeit elements across the united states.” Draft notification of the motor vehicle policies that mandate the fixing of invisible microdots on vehicles and all their elements to save you robbery and test faux parts is currently open for remarks and comment. “The draft notification of the motor automobile policies got here inside the last week of July and will stop counterfeiting to a degree, if and when adopted,” stated Pasricha.
