The Indian auto components aftermarket is expected to touch a whopping Rs 7000 crores in the coming years. But the growth of fake auto parts has led to huge losses of organized and credible players. The sale of counterfeit items and products also leads to a tarnished image of the original brands. Finally, the large amount of revenue generated by the production of counterfeit auto parts also leads to huge loss of the taxes.
The most counterfeited items in the auto component industry include steering arm, lamps, bearings, filters, brake linings, the clutch which are supplied across the world with the branding and packaging of the original or legitimate company. The lack of a regulatory framework, poor surveillance and little checks have led to a rise in the grey market of automotive components.
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.
Around 20 per cent road accidents on the Indian roads are caused by poor quality counterfeit automobile parts, as reported by FICCI. Besides this duplicate engine parts consumer excess fuel and also lead to a sudden engine failure. Along with this counterfeit brake pose a serious risk to human lives as they fail in times of emergencies.