The growth of the automotive industry in India has also given rise to the boom in the business of counterfeit auto parts. The annual loss in tax country is approximately Rs 2,700 million rupees. Despite the Indian government to control this illegal parallel industry is growing at an amazing rate.
To understand the reasons for the boom in this business we talk with the president of the Association of authentication solutions providers (ASPA), UK Mr. Gupta:
What is the status of counterfeit auto parts in India?
According to a recent study the gray market has a substantial presence in automobiles and has also shown a large increase of 29.6% in 2010 to 33.7% in 2012. The loss for the industry because of this gray market is estimated at Rs 10,501 crore in 2014, compared to 9,198 crores in 2012
But it is an illegal activity and illegal traders who try to remain invisible is unlikely to register their activities. For security reasons, data on illegal trade are often difficult to obtain, since enforcement often prefer not to disclose the extent of their activity. In addition, all methods for estimating illicit trade have their limitations.
What are the measures and technologies currently used to prevent counterfeiting in India? How effective are they?
One of the technologies most commonly used measures to combat counterfeiting is by applying optical variable devices (OVD) / Security holograms and security labels.
There are different levels and types of security to identify the authenticity of a spare car, such as are covert security features (optical characteristics) such as hidden text, text etc. Nano plot, and print, such as UV ink, the thermochromics ink etc.
There is also the safety of non-optical, such as bar code, the mirror effect and feature signaling effect. The signaling effect consists of a special layer of nanoparticles to a certain specific combination of the OVD or security labels, and the presence of these particles signaling can be detected only with the help of a reader, verifying the authenticity of the product place by a simple field test.
How contrive counterfeiters to create perfect copies of spare parts for cars and deceive consumers?
Counterfeiters are becoming successful because we are not doing their difficult task and we are not doing business counterfeit spare parts for cars less profitable. The packaging of spare parts in most cases are easily copied because of the availability of raw materials required for packing in other countries. In addition, the lack of consumer awareness is also helping the growth of this business.