Fake auto parts industry growing at alarming rate
The spiralling growth of Indian automobile industry has also led to an increase in the notorious counterfeiting business. Every year, the country bears a taxation loss of approximately Rs 2700 crore as spurious parts make Rs 11,000 crore of the Rs 40,000 crore Indian auto component market. Despite government checks, this parallel illegal industry is growing at an alarmingly pace. according to a recent study by FICCI "Illicit Market: A Threat to Our National Interest" the gray market has a substantial presence in auto and has also shown a big increase from 29.6 per cent in 2010 to 33.7 per cent in 2012, which is highest among major industries. The loss to the industry on account of this gray market is estimated to be Rs 10,501 crore in 2014, up from Rs 9,198 crore in 2012. The total loss to the government estimated for 2014 on account of illicit markets in the auto components industry is Rs 3,113 crore, up from Rs. 2,726 crore in 2012. This loss is only on account of tax revenues.