Fake spare parts’ growth beats auto sales.
CHENNAI: The Rs 22,000-crore counterfeit auto parts industry — growing faster than car and bike sales, and which doubled in the last five years — is giving headaches to original equipment manufacturers (OEMs). They are now hoping that the draft rules to eradicate spurious spares, which were notified in July, will get operational soon.
According to the Authentication Solution Providers’ Association (ASPA), the overall counterfeit product industry in India is worth Rs 1 lakh crore, causing the government tax losses of Rs 40,000 crore. While fake products are common in agriculture (fertilisers and pesticides) or even FMCG, they are life-threatening in the automotive and pharmaceutical industry, said ASPA president Nakul Pasricha.
“Counterfeiting is a huge problem in the auto parts after-market segment,” said Pasricha. “The total auto after-market in 2018-19 grew by 9.6% to Rs 67,491 crore ($10 billion) from Rs 61,601 crore ($9 billion) in the previous fiscal. Counterfeit auto components account for 30-40% of the overall after-market for components in retail outlets.”
Related Posts
Govt destroys RM 2.2mil worth of fake goods in Johor
KULAI: The Domestic Trade and Cost of Living Ministry has disposed of...
Solon seeks probe on fake antibiotics
A lawmaker proposed an investigation on the proliferation of a counterfeit...
Tobacco smuggling Gibraltar border row
The difference in the price of tobacco is fuelling an illegal trade of smuggling...
4 fake food products drawing venture capital
"Don't eat anything your great grandmother wouldn't recognize as food," writes...