Automotive & Lubricants
Counterfeiting continues to be a major growing issue in the automotive component industry. According to Motor Equipment Manufacturers Association (MEMA), USA the global automotive industry loses US $ 12 billion to counterfeiting. The Indian scenario is not a different story. According to FICCI – CASCADE latest study (Grey market the invisible enemy) released in 2012, the Auto component industry loses 29.6% of its sales due to grey market, worth US $ 2 billion ( Rs9198 crores out of estimated size of Rs 31,046) affecting the growth of economy, loss of jobs, brand owner goodwill as well as risk to public safety.
Most commonly counterfeit parts and accessories
The parts that tend to be counterfeited the most are frequent replaced parts such as brake pads, spark plugs, and various types of filters.
Impact of Counterfeit components
- Counterfeit oil filters cause sudden engine failure.
- Counterfeit brake pads, made of grass clippings and saw dust, have caused fatal accidents.
- Counterfeit windshields without safety shatterproof glass, cause injury or death.
- Counterfeit and piracy undermine consumers’ confidence in brands
Recent regulation and developments
Governments have a particularly critical role to play in this effort. All over world, they are doing their best creating the necessary legal infrastructure, educating police force, developing suitable laws to deter fraudulent behavior. In recent developments, The Ministry of Road Transport & Highways has taken proactive steps for consumer safety. In the recent amendment to the Motor Vehicle Bill, they have introduced few good measures such as High security registration plate (HSRP), usage of Microdots for vehicle tracking, directive of having colour-coded stickers that indicate the vehicle’s fuel type.While, Government has pushed notification related to vehicle security, Brand owners are gearing up adopting solutions for component security and playing their part to prevent the production and sale of counterfeit products.