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Fake Auto Parts: 40% Of All Spare Parts Sold In India Are Fake
Data released by the Automotive Component Manufacturing Association (ACMA) has revealed that a shockingly high number of automobile spare parts sold in India are not genuine.
In numbers, two in every five spare parts sold are fake or about 30-40 percent of parts sold in retail outlets are fake and amounted to about INR 35,000 crore until end of March 2014.
ACMA estimates out the value of the fake auto spare parts in the aftermarket at an astonishing INR 10,500-14,000 crore, reports BS. What's more worrying is that despite all the measures being taken to curb this menace, this illegal business has in fact, grown from INR 8,500 crore to its present state in the last three years.
The most commonly sold counterfeit parts are clutch, filter lamps, wipers, bearings, steering arm, brakes and brake linings, etc,. Without any exception, all automobiles, including passenger cars, small and large commercial vehicles, and two wheelers are affected by the non-genuine parts business.
While the fake parts business is bad from a financial point-of-view, for manufacturers as well as the government (the latter loses about INR 2,200 crore annually in tax revenue), it is also dangerous for those who make use of these products.
AMCA says that about 20 percent of all road accidents could to attributed to use of non-genuine parts, one way or another.
The counterfeit parts business continues to exist due to reasons such as ease of manufacturing and transport, higher margin of income for manufacturers and resellers. Supply constraints of original parts and lower price of fake parts are some of the reason why consumers continue to drive this business.
Manufacturers, with the help of local authorities are conducting raids, raising awareness among consumers through campaigns and are improving their own services to make genuine parts more easily accessible.
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