The selling of counterfeit goods and products under the name of reputed brands not only brings the immense financial loss to the original brands but also poses a great threat to the Indian economy.
The Indian auto components aftermarket is expected to touch 75552 crores by FY19-20 as estimated by Automotive Components Manufacturers Association of India. However, the counterfeit business in the auto industry, which is growing at an alarming rate, slows down the growth and development of organized players in the market. The selling of counterfeit goods and products under the name of reputed brands not only brings the immense financial loss to the original brands but also poses a great threat to the Indian economy. After all, the hefty revenue generated by large-scale production and marketing of counterfeit products, which are 30-40% cheaper, but of poor quality, does not even contribute to government taxes.
The fake auto parts such as a clutch, lamps, steering arm, bearings, filters, and brake linings for two-wheelers, cars, and buses labeled under the name of genuine auto component manufacturers are supplied to the dealers and marketers all over the country. The reduced versions of original parts easily available at low-costs allure the unaware retail dealers, mechanics, and the end-consumers. The lack of adequate means to put the counterfeit businesses by the brands, lack of consumer awareness, and the ineffective surveillance and law enforcement on the trading of fake auto components fortify this widening grey market. While genuine brands suffer the damaged reputation and financial loss, the end consumers have to deal with fatal road accidents and severe injuries caused by the fake auto parts fitted in their vehicles. Basically, the counterfeit business in auto component industry drives all the stakeholders of the market towards a loss in different forms.
Publication : Business World