Fake auto parts lead to a loss of Rs 2, 200 cr a year to Govt: ACMA

According to a recent report released by industry body ACMA, the Indian automotive aftermarket has reached the 33,000-crore mark. However the fake spare parts are costing the government exchequer Rs 2,200 crore a year.

The study conducted by Automotive Component Manufacturers Association of India (ACMA) reveals that the component industry contributed Rs 24,800 crore to the aftermarket.

The industry body also unveiled a 'white paper on legislative improvements to combat counterfeit auto components' delineating the quantum of counterfeiting in the auto components in India.

The paper throws light on the rising concern over the increasing menace of the counterfeit components in the industry which was estimated around Rs 8,700 crore in 2010.

The study clearly mentions that the counterfeiting is not only causing a loss of whooping Rs 2,200 crore to the exchequer but is also contributing towards unemployment. As per the study , counterfeiting leads to a loss of 1.15 million jobs in a year which is huge.

Speaking on the situation, ACMA President Srivats Ram suggested that it is time to re-orient the Motor Vehicles Act as Automotive Components Anti Counterfeit and Product Safety Law with a comprehensive definition of counterfeit or spurious auto components.

The study says that aftermarket in India of the on-road vehicles was valued at Rs 33,000 crore. Out of which servicing accounts for 25 percent, however the rest of the majority comprises of components.

ACMA also conducted the first ever estimation of vehicle park in India which is based on 44 regional transport offices that account for 50 percent of the total and discovered that in 2010 on-road vehicular population surpassed 94.7 million.

The study suggests that the passenger vehicles and commercial vehicles contributed 26 per cent and 25 per cent, respectively.

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