Fakes threaten to spoil India's auto hub image: SIAM

The ever-increasing auto spare parts counterfeiting, which has grown to over Rs 6,300 crore, is threatening India's image and the country could get the dubious distinction of becoming a global hub for such activities, according to the Society of Indian Automobile Manufacturers (SIAM).

"Up to now counterfeiting of auto spare parts has been mainly done from places like China, Dubai and Thailand. But India is also becoming big place," SIAM Group on Anti-Counterfeiting Chairman Rajendra Bhurat said.

He said the counterfeiting business in India is estimated to be about one-third of the Rs 14,000-crore auto spare parts after market. As per an IMRB study done in 2006, it could be anywhere between Rs 4,395 crore and Rs 6,322 crore.

"If we don't tackle this problem we could be easily clubbed with countries like China as a hub of counterfeiting and there is every possibility that at a time when the economic growth is slowing down, these activities could be on the rise," he said.

As such the price difference between a genuine and fake parts is about 30-40 per cent, he added.

Bhurat said there was a need for a co-operation between the industry and law-enforcement agencies to reduce the scale of these activities.

"We know it is not possible to end this completely but we are trying to reduce the scale," he said while reaching out to law enforcement agencies to help the industry.

Delhi Police Additional Commissioner, Economic Offence Wing (Crime Branch) SBK Singh said the industry would need to develop in-house intelligence to support law enforcers to tackle counterfeiting.

Besides, companies need to show commitment to take cases to their logical end and not think it is over after raids at places where counterfeiting takes place, Singh said.