ACMA and SIAM call for immediate government action to contain growing menace of counterfeit parts

June 8, 2012: The Indian automotive industry has called for immediate government intervention for amendments in the existing legislations to contain the sale of counterfeit components. Spurious auto parts currently account for 36 percent of the Rs 33,000 crore Indian aftermarket

At a national seminar in New Delhi to commemorate the World Anti Counterfeiting Day today, both ACMA and SIAM have strongly shared and advocated the global concern counterfeits have on the trade and economy of a country.

Commending the automotive sector as one of the frontier sectors in its vibrant mode, chief guest Ambuj Sharma, joint secretary, Ministry of Heavy Industries & Public Enterprises, government of India , emphasised on continued initiatives by the apex bodies on consumer awareness programmes. He also called for a need for improvement in enforcement measures through establishment of special courts that could specifically address the issues of counterfeiting. He added 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 had also conducted an extensive primary research to understand the impact of counterfeits with its findings through a white paper. The paper highlights various enactments under the existing legislative framework with suggested recommendations and a rationale for such recommendations. The ACMA-SIAM Seminar on Anti-counterfeiting has taken a critical look on the dispensation of enactments listed in the White paper with the industry’s resolve to contain this menace. Notable among these enactments has been the industry’s demand to amend the Motor Vehicles Act that lays down standards for components and parts of motor vehicles.

The Motor Vehicles Act, the industry feels, should be intended not only to regulate completely assembled vehicles but also equally apply to components used or intended for use in vehicles including parts sold in the aftermarket. According to Arvind Kapur, President ACMA “As per industry primary research findings, counterfeit sales result in a loss to the government exchequer to the tune of Rs 3,100 crore per annum with an employment loss estimated 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”.

According to S Sandilya, president, SIAM, “Auto industry is spending big sums on technology to support environment cause and for making the world a better place for future generations. Counterfeits act for just the opposite cause and hence we have decided to work on this area seriously”.

Over 100 delegates comprising members from the automotive fraternity, senior government officers from concerned ministries, automotive research bodies, dealers and distributors participated in the day-long seminar.