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Tuesday, 29 April 2008

Counterfeits galore at 1,500 crore

As counterfeits have a free hand to market their products despite efforts by manufacturers to maintain the difference, it is imperative that government steps in to stop this. The government, so far, has shown a laidback attitude. As the number of companies entering India increases, the government also needs to take quick action on this.

If India does not act fast, the problem could get compounded beyond repair. It may reach the scale of China’s piracy in electronic and auto parts. The individual car part buyers are in no stage to contain the menace, as most counterfeit parts look more original than OEM products themselves. Moreover, it is not possible by the companies to monitor every nook and corner of the country. Hence, it rests on the government to enact tough laws and implement them.

In a recent study by National Council of Applied Economic Research stated that counterfeit auto parts form a shocking 37 percent of the total component market in India. The

Counterfeits of OEM parts of all car manufacturers in India ranging from Maruti Suzuki to Mercedes-Benz are available in the market. The market size of counterfeits is valued at Rs 1,500 crore. This issue not only affects the original products but can also prove fatal to the car owners.

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