Counterfeit Auto Parts leading to loss of lives and revenue - Action Needed
Counterfeit parts are leading to loss of lives and tax collection. Time India acts on this. LocalCircles please escalate. Till this becomes a main stream subject, Govt may not act.
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
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
Viewed by 1545
View all 11 comments Below 11 comments
In good old days, components manufactured by auto ancillary industries (other than the original ones) were abundantly in market and not that they were bad quality. Look at the scenario today, all the auto manufacturers are manufacturing components that are designed to last only for a shorter stipulated period and are highly priced as against earlier times thereby forcing you to change the expensive components periodically. As against this in the earlier times, components were mostly of good quality and used to last, at times, longer than the original ones at half the price. How there can be any tax evasion and why that cannot be checked? more
Aug 17
PUTHUCODE ANANTHARAMAN (CHEMICAL MAN WITH ENVIRONMENT AND ECOLOGICAL FOR INDUSTRIS AND LEGAL EXPERT)
Counterfeit products availability is one reason many Indian surviving. Reason. 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
Aug 17
The problem of counterfeit comes due to the fact that for genuine parts (including bought outs) the dealers charge high amounts as mandated by vehicle manufactures. Reasonable mark up will not only boost revenues of dealers/vehicle manufacturers but also kill the counterfeit market more
Aug 17
Automobile industry is in the verge of collapse.And you say the govt needs 40000 crore from this ailing industry.Hope some sense prevails on this group of intelligentia. more
Aug 16
I am sorry that we are the culprit because when you go for purchase of spares the shop keeper asks you what you want, we generally opt for the lowest quote spares secondly what ever has been discussed is right and we have to act swiftly to reduce the menace. more
Aug 16
