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Wednesday, Aug 25, 2004

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`Fake auto spares market near $1 b'

Our Bureau

New Delhi , Aug. 24

DESPITE producing high-quality auto components in India, counterfeit spare makers are thriving in the country, with the market for fake parts estimated at close to $1 billion (around Rs 4,700 crore).

``Counterfeit spares account for as much as 25-30 per cent of the Rs 15,000-crore replacement market, with Northern India accounting for a major share,'' Mr Rajeev Dubey, Executive Vice-President, Mahindra and Mahindra said.

Addressing a seminar `Intellectual Property Infringement - counterfeiting/ piracy in auto component sector' organised by the Confederation of Indian Industry (CII), Mr Dubey said Delhi and Mumbai were the main distribution centres.

``Large base of unorganised distribution channels, trading centres, fragmented and untrained street-side mechanics are among the root causes for the spread of these counterfeit spares. Also, there is lack of focus by OEMs on the after-market as well as low awareness in consumers for identification of original/fake parts,'' he said.

He estimated that the revenue loss to Government on account of these counterfeit spares at around Rs 3,600 crore annually.

Mr R.K. Ghosh, Head (non-vehicle business) at Tata Motors, said the counterfeit spares had an adverse effect on vehicle performance, in terms of safety as well as environmental norms. Also, counterfeit spares put the life of the owner as well as the vehicle in danger.

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