End-of-Life Vehicle policy can help reduce fake parts: SIAM

June 10, 2013: If the government institutes an end-of-life vehicle policy, it would go a long way in cutting down the incidence of fake parts in the auto sector, says Sanjoy Gupta, chairman of SIAM’s anti-counterfeiting group and vice-president, Customer Care, Mahindra & Mahindra. He was speaking a press meet last week, a day ahead of World Anti-Counterfeiting Day on June 8. Detailing the many effects of fake automotive parts, he said that taxes worth Rs 2,500 crore are lost even as vehicular safety is compromised. It has been estimated that 20 percent of road accidents in India are linked to the use of fake parts.

Rajesh Bagga, co-chairman, SIAM’s anti-counterfeiting group and vice-president, legal, Tata Motors, said that improvements in printing technology had provided a boost to the spread of fake parts as spurious parts can now be better packaged and the authorities cannot easily identify them.

Both Gupta and Bagga said the problem of counterfeit parts has been exacerbated by the fact that while the laws in existence are adequate to tackle counterfeit parts, it is the implementation that leaves much to be desired. Moreover, the law enforcement authorities are not aware of the legal provisions.

As far as SIAM goes, Bagga said that as part of its awareness attempts, SIAM has focused on mechanics and also on awareness at the taluka and tehsil levels. As far as the quantum of fakes goes, Bagga said that the impact is more on two-wheelers as the parts are small and easily made. SIAM has tried to spread awareness among owners of autorickshaws and small vehicles.

As per a SIAM study, as of 2011, counterfeit sales has caused job losses of over 1.5 million, consumption of an additional 109 million litres of petrol and 8 million litres of diesel per year. Significantly, the use of fake parts in vehicles has contributed to over 25,400 deaths and more than 93,000 injuries in 2009 on Indian roads. The statistics from 2009 till now should be far higher.

Photograph (L-R): Saurabh Rohilla, associate director - SIAM, Rajesh Bagga, co-chairman of SIAM Anti-Counterfeiting Group and Sanjoy Gupta, chairman of SIAM Anti-Counterfeiting Group.