According to media reports, counterfeit auto parts industry in India has reached to a value of around Rs 22,000 crore leaving behind car and bike sales in the last five years. In India, some of the most commonly counterfeited auto spare parts include brake pads, spark plugs, lamps, cables, alloy rims, grills, filters etc.
Cheap auto components don’t just damage your vehicle but are also a threat to your life.
Around 20% of road accidents in India are caused due to fake automotive parts- FICCI CASCADE
The FICCI report also states that fake auto parts led to a revenue loss of Rs 2,200 crore to the government in the past years.
Negative impacts on the automotive industry
No wonder, counterfeit auto parts have many negative impacts including accidents and even death. Remember, the idea of deliberately buying a fake & cheap auto part may cost your life. Fake auto parts usually break down or malfunction without a hint. For example, a fake brake pad may fail in an emergency situation and may lead to a fatal accident.
Counterfeit auto parts also lead to major revenue losses for manufacturers every year. Besides, they also overburden the manufacturers with extra costs for fighting fakes. Along with consumers and manufacturers, the government loses a large amount of taxes due to the sale of counterfeit auto parts. Quite evidently, huge evasion of taxes is a bane for the country’s economy.
Solutions to prevent counterfeiting
Holostik is an industry leader in providing anti-counterfeiting solutions for the automotive sector. Its vast range of anti-duplication products combined with IT-enabled solutions helps to secure the products and supply chains. Holostik’s approach of catering customised anti-duplication solutions had shown effective results for automotive companies.
The auto component after-market reached to a staggering value of Rs 67,491 in 2018-19 crore however, the counterfeit market is also growing at a fast pace. In such a scenario, diligent use of anti-counterfeiting solutions can prevent counterfeiting by securing products and supply chains at the same time.