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Neha Kaushik

NEW DELHI, Feb. 9

NEXT time your mechanic hands over a fat bill when your car comes back from servicing, don't forget to check what parts he has put in. For, according to market estimates, approximately 50 per cent of the after- market for automobile components is spurious.

According to a sample survey done by the National Council of Applied Economic Research (NCAER), the spurious market for auto components results in approximately Rs 1,520-crore revenue loss for the Government. A more disturbing fact is that more than 66,000 accidents are caused every year due to the usage of duplicate parts.

In a bid to counter this menace, the Association of Component Manufacturers Association (ACMA) has set up a separate cell called the consumer affairs committee. The committee will undertake measures such as increasing consumer awareness, and conducting raids to help curb the duplicate market.

"We are trying to educate the consumers about spurious products through various direct marketing initiatives. We are also making an educational film, which will be screened at cinema theatres. Moreover, so far, only individual ACMA members have been conducting raids. However, now, we will be conducting raids as an association. We are planning to conduct about 100-200 raids per year", Mr K. Mohan, President & Director of Fenner (India) Ltd and Chairman of ACMA's consumer affairs committee said.

Auto component companies too are facing a tough time due to the spurious market, with many leading companies reporting that for specific segments, almost 50 per cent of the products sold under their names are duplicates. "The spurious components market is very active in Delhi, Uttar Pradesh, Bihar and Kolkata", Mr Mohan said.

Meanwhile, the survey points out that the higher latent profit margins in the duplicate trade "have lured an ever increasing number of traders to the trade. The profit margin on spurious components range from 17 per cent to 26 per cent, as against three to five per cent in respect of OE (original equipment) brands at the retail outlets."

Further, with low quality inputs and technology, the spurious components are produced at one-third or one-fourth of the cost of production of OE components. Though with the same price tag as OE components, the duplicate products are actually sold at half of the market price, the survey found.

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