The Indian automotive industry has called for immediate Government intervention for amendments in the existing legislations to contain sale of counterfeits. ACMA and SIAM, the two apex bodies spearheading the sector, are extremely concerned over the growing rate of spurious auto parts currently accounting for 36 per cent of the Rs. 330 billion Indian aftermarket.
At a national seminar to commemorate the World Anti Counterfeiting Day held on June 8, both them shared the global concern over the impact counterfeits have on the trade and economy of a country.
Commending the automotive sector as one of the frontier sectors in its vibrant mode, Mr. Ambuj Sharma, Joint Secretary, Ministry of Heavy Industries & Public Enterprises, called for continued initiatives by the apex bodies on consumer awareness programs and for improvement in enforcement measures through establishment of special courts that could specifically address the issue of counterfeiting.
He also stated that his Ministry, along with the Ministry of Road Transport and Highways, is already working with ACMA and SIAM for a time-bound roadmap on amendments to the existing enactments.
ACMA conducted an extensive primary research last year to understand the impact of counterfeits with its findings through a White Paper that highlighted the various enactments under the existing legislative framework with suggested recommendations and a rationale for such recommendations.
The seminar on anti-counterfeiting jointly conducted by ACMA and SIAM has taken a critical look at the dispensation of enactments listed in the White Paper with the industry’s resolve to contain this menace.
Notable amongst these enactments has been the industry’s demand to amend the Motor Vehicles Act that lays down standards for components and parts for motor vehicles.
The Act, the industry feels, should be intended not only to regulate completely assembled vehicles but also apply to components used or intended for use in vehicles, including parts sold in the aftermarket.
According to Mr. Arvind Kapur, ACMA President, as per industry primary research findings, counterfeit sales is causing a loss to the Government exchequer to the tune of INR 31 billion per annum with an employment loss estimated at over 1.15 million jobs, consumption of additional 109 million litres of petrol and 8 million litres of diesel per annum. The use of counterfeits resulted in 25,400 deaths and more than 93,000 injuries in 2009.
Mr. S. Sandilya, SIAM President, stated that the auto industry is spending big sums on technology to support the environment cause and for making the world a better place for future generations. Counterfeits act for just the opposite cause, and hence the SIAM decision to work on this area seriously.
Over 100 delegates comprising members from the automotive fraternity, senior officials from the concerned ministries, automotive research bodies, dealers and distributors took part in the one-day national event.