The Automotive Component Manufacturers Association of India (ACMA) believes the government’s recent demonetisation move will hit the fake parts trade in the country.
According to Vinnie Mehta, director general, ACMA, “We welcome the government’s initiative of demonetisation and extend full support to its implementation. While in the short run it has adversely impacted the auto component market, it has created the right conditions for the industry to progress into one that is digital-friendly and thus prepare it for the next big reform – the GST. We expect the market to pick up by early next quarter as the situation stabilises with better cash availability in the system. The demonetisation will also help evolve the unorganised auto components aftermarket into an organised one, thus helping curtail the menace of counterfeited products.”
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