Counterfeit Auto Parts leading to loss of lives and revenue - Action Needed
The overall counterfeit product industry in India is worth Rs 1 lakh crore, causing the government tax losses of Rs 40,000 crore. While fake products are common in agriculture (fertilisers and pesticides) or even FMCG, they are life-threatening in the automotive and pharmaceutical industry
The total auto after-market in 2018-19 grew by 9.6% to Rs 67,491 crore ($10 billion) from Rs 61,601 crore ($9 billion) in the previous fiscal. Counterfeit auto components account for 30-40% of the overall after-market for components in retail outlets.
Apart from sales loss, there are also lives lost. “A good 20% of all road accidents in India is attributed to counterfeit automotive parts and counterfeiting in the auto sector results in tax revenue loss of about Rs 2,200 crore to the government. more
One may have preference for original products,where as hundreds wish to have inexpensive spares,due to cost difference.
All garages fit only counterfeit parts as contract is given by a vehicle owner, on lump sum
Mr.dhinakaran's comment regarding automotive sector was largely expected ,because of large scale layoffs unemployment by many major sectors, lack of rewarding placements. Many,who bought vehicles,shelters and other luxury products,fails EMI remittances, thus,paving way for reduced production of all capital goods.
Coming days are more brim than what expected,hence,think thrice before spending. more