ACMA on CCI order: Regulatory, enforcement infra needed first

Auto component manufacturers' body ACMA today said the country needs to first create necessary regulatory, investigative and enforcements infrastructure for aftermarket products, to ensure that genuine parts were made available to end consumers.
"Nothing should be done that increases the risk to the consumer," it added.
A few days ago, Automotive Component Manufacturers Association (ACMA) in a statement on CCI's order on automobile spare parts, had said it was critical to create an open market to benefit end consumer as the number of vehicles in India increases.
"While we should aspire to eventually become like the developed nations, we need to first create the necessary regulatory, investigative and enforcements infrastructure, including standards, homologation, etc, for aftermarket products similar to European markets, to ensure that genuine, high quality parts are made available to the end consumers," ACMA Director General Vinnie Mehta said in a statement.

The aftermarket in the country is plagued with counterfeit and spurious components which directly impact the safety of the end consumer, adding that the country already fares poorly when it comes to road safety. Road accidents last year led to around 1.5 lakhs deaths, it said.
"Those wanting to buy genuine parts should be assured that they can do so. The government, vehicle makers and component manufacturers need to take this into cognisance before we alter the delivery mechanism for the aftermarket," it said.

The need of the hour is to create an country specific solution, keeping the ground realities in mind, it added.

"As the vehicle parc in the country grows, it is critical to create an open market which is in the best interest of the end consumer," Mehta had said.
Stating that regulatory frameworks have been established in Europe and in pats of US regarding the issue, he had said: "The aftermarket in India is plagued with counterfeit and spurious components; allowing larger number of organised players in the market will not only improve the product offering but will also enrich the customer experience of vehicle ownership, thus positively impacting the overall image of the automotive industry."
On August 25, 2014 the Competition Commission of India (CCI) had issued an order on regarding trade practices of select OEMs covering aspects, including procurement and sale of spare parts from component manufacturers and after sales service.

The CCI had slapped a penalty of Rs 2,545 crore on 14 car makers, including Maruti Suzuki and Tata Motors, for violating trade norms in the spare parts and after services market.