New Delhi, February 9, 2013: The first ACMA Automechanika trade fair saw the launch of an IPR handbook by the Automotive Component Manufacturers Association of India (ACMA). The IPR handbook by Anand & Anand is aimed at educating consumers on the nuances of intellectual property rights (IPR). It is available on the ACMA website and can be downloaded for free.
At ACMA’s Asli Naqli stall member companies have showcased genuine products alongside spurious ones to educate visitors about the differences. Vinnie Mehta, executive director of ACMA, says that the anti-counterfeiting initiative has involved creating of kiosks at three markets in Delhi for educating the common man against use of fake parts besides enacting ‘nukkad nataks’ or street plays. “There are no standards in the aftermarket; for instance, safety standards for imported parts; standards at the excise level when components are coming out of the factory gate or at the retail level involving checks by the police,” says Mehta.
ACMA’s Consumer Affairs & Anti-Counterfeiting Committee has conducted about 500 raids in the last two years under the ACMA umbrella. “Every month one SMS is sent at a cost of 3-4 paise to 10,000 auto component wholesalers, retailers and mechanics to spread the message of maintaining vehicle health,” adds Munish Malhotra, chief general manager – sales and marketing, Talbros Automotive Components.
A major lapse in the legal framework is the ease with which a spurious part manufacturer or dealer escapes the dragnet of the law, the offence being bailable. Hence, ACMA has submitted a white paper to the Heavy Industries Ministry for making it a cognizable and non-bailable offence.
In comparison, in Germany, counterfeiting is a criminal offence. Raj Manek, managing director of Messe Frankfurt Trade Fairs India, says customs officials walk around the show in Germany. Besides, IPR experts are consulted on IPR-related issues.
The Messe Frankfurt Against Copying Services (MFAC) is a similar initiative to curtail fakes and according to Manek, the next Automechanika will sport a larger display for this stall. ACMA Automechanika fair could assign only a small space for the Asli Naqli and MFAC stalls due to shortage of space.
According to the latest study, ‘Indian Automotive Aftermarket 2012 The Future ahead’, done by Nielsen Company on behalf of ACMA, it is estimated that the government of India loses close to Rs 22 billion per annum due to the sales of counterfeit automotive components. Often this happens when consumers visit unauthorised dealers after the vehicle’s warranty period is over, in order to save costs on vehicle repair and maintenance. In other cases, fakes are bought intentionally to save on costs. In the case of heavy commercial vehicles and passenger vehicles, counterfeits contribute to 20 percent of the fatal road accidents especially through use of brake pads. Additionally, it leads to use of additional fuel consumption. According to ACMA-E&Y estimates, consumption of close to 109 million litres of additional petrol and around 8 million litres of additional diesel can be attributed to use of counterfeit parts valued at Rs 6 billion annually.
Counterfeits also result in additional vehicular pollution. Driving an average light vehicle 15,000km per year, emitting 160gm of carbon per kilometres will lead to the release of 2.6 tonnes of CO2 into the atmosphere annually. For the same vehicle using counterfeit components, this figure is estimated to be 10-15 percent higher and still higher in the case of heavy commercial vehicles.
SHOBHA MATHUR