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
HMRC arrest six in £22m tobacco smuggling and tax fraud raids
Six men have been arrested in a series of raids by officers investigating a...
Vijayawada Customs Commissionerate seizes 26 lakh smuggled foreign cigarettes
VIJAYAWADA: As many as 42.72 lakh foreign and illegally made Indian cigarettes...
NAFDAC destroys counterfeit products worth N650m in Kaduna
As part of its efforts towards eradicating fake drugs in the society, the...
Virginia crime panel endorses cigarette licensing
RICHMOND—Virginia lawmakers should license retailers to sell cigarettes to clamp...