“Loyalty programmes for mechanics fail since the difference between the incentives provided by OE part makers and the profitability out of fake parts is unavoidably huge.”
Ramani says counterfeit automotive parts, unlike drugs and cosmetics, are not life threatening and do not come under cognizable and nonbailable offences. Amarjit Singh responds that under the Trade and Merchandise Mark Act 1958 the act of falsification and counterfeiting was not cognizable and bailable but under Trade Marks Act 1999 and Copyright Act the offences of counterfeiting are cognizable. Patents and Designs Act do not have any criminal liability.
Sanjeev Singh, Director, Aftermarket, India, Federal-Mogul Corporation, Vehicle Components Segment
It is difficult to connect accidents with spurious parts. However, the White Paper, based on primary research, estimates that around 20 percent of total road accidents in India can be directly or indirectly attributed to counterfeit automotive parts. This resulted in 25,400 deaths and more than 93,000 injuries during 2009. It is untrue to state that India is the only victim market for counterfeits since companies in many countries are involved in this business. Counterfeits from India get exported to several other markets including South Africa, Sri Lanka, Bangladesh and Nepal. While low-end products are manufactured in India the high technology ones are imported mainly from China where suppliers use the internet to advertise their products using OEM part numbers. Anonymity is synchronous with online trading as sites display only email addresses and mobile numbers, so tracing cheaters will always be a problem.
The Solution
Well, what are the options available for those affected by counterfeits? Ramani insists that customers ignore low costs and buy only original parts with proper invoice. Consumers do away with bills to avoid paying sales tax and other surcharges. Many companies are unaware that illegal imports can be prevented by registering their IP with Customs. The department tracks revenue loss on imported parts if underinvoiced, which is the usual practice of counterfeiters. Brand custodians must involve in this process otherwise dilution will certainly take place.
Vipul Tandon – vice president – Cummins Sales & Service – India
Sanjeev Singh feels counterfeiting needs to be tackled by industry bodies, manufacturers and other relevant stakeholders. Federal-Mogul has specially designed tamper-proof product packaging for the twowheeler segment with an exclusive anti-counterfeit barcode that features online authentication. A unique identification number is assigned to each stock keeping unit in the market, and buyers can check product credibility by scanning the 16-digit bar code at any authorised distributor location.
According to P Raghavendra Rao, director-marketing, Kusalava International, counterfeiters copy their packaging of parts meant for older vehicles. This is more in the price sensitive tractors and power tiller segments. As the company is registered its brand, design and packing under the Trade Marks Act, it send legal notices, with high compensation due, to spurious suppliers. Selecting knowledgeable distributors and dealers in the supply chain, generating frequent market reports, conducting surprise raids, creating awareness and maintaining adequate stocks can contain counterfeits, he opined.
Fake clutch plates
Balasubramaniam feels that stringent laws should be put in place as offenders now are released within a day or two. INEL, a leader in auto electrical systems, loses about Rs three crore yearly because of counterfeits in their two-wheeler ignition and power management products like control units CDI, regulator and rectifier units, ignition coils etc.
Kandaswamy believes that controlling counterfeiting has certainly improved over the years as many companies are offering extended warranties for parts. Since the warranty becomes void if violated, more people are going to legitimate outlets for genuine spares. To effectively combat counterfeits it is necessary to orchestrate consented efforts to include all stake holders and make it an ongoing exercise rather than an occasional event. ACI
Story : T Murrali
