Counterfeit auto parts, a big threat for the automotive industry in India

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.

To know about our anti-counterfeiting & IT-enabled supply chain solutions, call us on +91–785-785-7000 or drop us a mail at connect@holostik.com

Honda two wheelers conducts raids to deal with fake auto spare parts

Recently, Honda two-wheelers conducted enforcement raids against manufacturers and traders who were dealing in its counterfeit products. In order to guarantee safety, the two-wheeler manufacturer created an Intellectual Property Rights (IPR) team in 2017. The team has until now implemented countless measures against traders, manufacturers and suppliers who deal in duplicate Honda spare parts.

In June 2019, the company with the help of local Police executed four raids in the cities of Delhi and Cuttack. The raids were conducted on traders, manufacturers, suppliers and unauthorized service centres. After the raids around 10,462 fake items including fake parts, accessories, dies, scooter guard kits, fake packaging machines and label printing machines were confiscated. The company said that the overall value of fake products and parts is valued at around Rs 49 lakh.

The police conducted two raids in Delhi on the basis of a complaint made by a manufacturer against fake parts and accessories being sold in Karol Bagh market and Bawana Industrial Area. In the city of Cuttack, the police raided premises of two service centres running under fake Honda brand name at Sector 9 and Chandi road.

Honda’s two-wheelers IPR enforcement team has collaborated with the local police as well as the investigation agencies and has jointly conducted raids in the cities like Delhi, Chennai, Bengaluru, Secunderabad, Hyderabad, Mumbai, Gandhinagar, Cuttack, Gadhi Hasaru (Gurgaon) and Ahmedabad. As a result of the raids 94,000 fake spare parts, accessories and other items worth Rs 2 crore have been seized.

Honda two-wheelers also pointed out that all genuine Honda parts feature tamper-proof high-security MRP label which can be used to differentiate between its genuine and fake auto spare parts. It also added that the company’s original spare parts are available at authorized outlets, service centres and distributors across India.

Source: Timesnownews.com

What are the negative effects of duplication in the automotive industry?

Counterfeiting in the automotive industry is a growing issue for both manufacturers and consumers. The Indian auto component industry will become worth Rs 7000 crores in the coming years. However, substandard automobile parts are leading to monetary losses for genuine manufacturers and are the cause of 20% road accidents which ultimately lead to life-changing injuries and deaths. Major counterfeiting is witnessed in the automotive aftermarkets where a customer hardly checks the genuineness of an original auto spare part.

Automotive parts are made to visually look like OEM (original equipment manufacturer) parts. The often bear the trademark, labels and packaging of the original product.

Now imagine a situation in which your car suddenly malfunctions, and you are in a hurry to attend an office meeting, the next thing you will do is to get the same it sorted with a mechanic. He will look out for the glitch and will replace the faulty part with a new one and you won’t ask him a single query- all that you want at this time is to get your work done in the least possible time. This is where you are duped with a counterfeit auto part most of the times which pose a serious risk to your safety.

Some of the highly counterfeited auto components include lamps, bearings, filters, brake linings, clutch and many more. Legitimate companies are finding it hard to battle dubious manufacturers who are manufacturing and supplying substandard auto components to different aftermarkets across various locations in India. Even filing police complaints against forgers is not proving to be a concrete solution and is not preventing the duplication of automobile parts.

Genuine manufacturers suffer heavy monetary losses due to counterfeiting. There is a drastic slump in the sales as consumers, especially in small town, prefer to buy an affordable product because renowned brands are a costly affair and thus, they refrain from them. In addition, with a number of counterfeit brands available for the consumer the choice is not restricted and he or she can opt for the cheapest option available.

According to a FICCI CASCADE report around 20%, road accidents in India are caused by counterfeit automobile parts. Failure of fake brakes, faulty bearings and even poor-quality tyres are responsible for sudden accidents and many people die every year due to them. Counterfeiting of auto parts is not a problem limited to India but has spread across the world. With the proper regulatory framework, consumer awareness and use of authentication technologies the problem can be tackled up to a high extent.

Holostik showcases its anti-counterfeiting solutions at ACMA’s 58th annual session

Holostik the leader of anti-counterfeiting solutions in India participated at the 58th Annual Session of ACMA (Automotive Component Manufacturers Association of India) – an apex body of auto-component industry in India. The event was held on the 5th of September at Hotel Taj Palace New Delhi. Holostik marked its presence at the event by showcasing its cutting-edge anti-counterfeiting solutions for different kinds of automotive products. Delegates from the automotive industry swarmed at the stalls of Holostik to witness the best anti-counterfeiting solution for their products.

Since the automotive industry suffers from massive counterfeiting in the aftermarkets it can be secured with the latest anti-duplication products and solutions provided by Holostik. This will not just boost the growth of automotive industry but will also ensure safety of consumers who lose their life, every year, due to counterfeit automotive products. The annual session was addressed by Mr. Anant Geete, Hon’ble Minister for Heavy Industries and Public Sector Enterprises, Mr. Suresh Prabhu, Union Minister for Commerce & Industry, Civil Aviation, Government of India, Mr. Nitin Gadkari, Hon’ble Union Minister of Road Transport and Highways, Government of India and Dr. Asha Ram Sihag, Secretary, Department of Heavy Industries, Ministry of Heavy Industry & Public Enterprises, Government of India.

The event was also garnered by the presence of eminent personalities from the automotive industry which include Mr. Kenichi Ayukawa, Managing Director, Maruti Suzuki India, Mr. Guenter Butschek MD and CEO, Tata Motors, Mr. Minoru Kato, President and CEO, Honda Motorcycle and Scooter India, Mr. Rakesh Bharti Mittal, President CII & Executive Vice Chairman, Bharti Enterprises, Dr. Pawan Goenka, Managing Director, Mahindra & Mahindra, Dr Abhay Firodia, President SIAM & Chairman, Force Motors, Mr. Nirmal Minda, President, ACMA & CMD, Minda Industries and Mr. Ram Venkataramani, Vice President ACMA & MD, IP Rings.

A study titled “Auto Component Industry in India: Preparing for the future” was released by Chief Guest Mr Anant Geete at the session. The study revealed that there is a huge potential of opportunities for the auto-component industry in India. This will be boosted by the growing vehicle consumer market along with the introduction of next-generation mobility.

While commenting on the future of automotive industry Mr. Nirmal Minda, President, ACMA said, “the auto and auto component industry, globally and in India, is undergoing a transformation across its entire supply chain; several factors such as new regulations on emission, safety & environment, fast-changing customer preferences, shifting economic dynamics and trade policies are reshaping our industry. The case globally, e-mobility is fast catching the imagination of our policy makers; a definite policy delineating the roadmap for e-mobility in India is, therefore, the need of the hour. We are confident that as hybrid and electric technologies gains traction, vehicle manufacturers will support localisation of components.’

 Mr. Nitin Gadkari, Hon’ble Union Minister of Road Transport and Highways, Government of India highlighted “To strengthen the economy, our government is actively pursuing the policy of substituting imports and boosting exports. I am pleased to see the auto component industry perform remarkable in turnover and exports. I believe there are immense possibilities for this sector to grow further.  Our government is driving the agenda of promoting Innovation, entrepreneurship, technology and research.”

On the occasion, Mr. Anant Geete, Hon’ble Union Cabinet Minister for Heavy Industries, Government of India and Public Sector Enterprises, said “The automotive industry is the top contributor to the Government of India’s Make in India initiative and has accounted for maximum investments under the program. Going forward, we would be framing the auto policy in accordance with the current state of the automotive industry and demands of the future. I assure the ministry of heavy industries will support the industry to resolve all issues and concerns.”