Counterfeiting continues to be a major growing issue in
the automotive component industry. According to Motor
Equipment Manufacturers Association (MEMA), USA
the global automotive industry loses US $ 12 billion
to counterfeiting. The Indian scenario is not a different
story. According to FICCI – CASCADE latest study
(Grey market the invisible enemy) released in 2012, the
Auto component industry loses 29.6% of its sales due
to grey market, worth US $ 2 billion (INR 9198 crores
out of estimated size of INR 31,046).
To combat this menace all Stakeholders need to fight
at their level. Governments have a particularly critical
role to play in this effort. All over world, they are doing
their best creating the necessary legal infrastructure,
educating police force, developing suitable laws to
deter fraudulent behaviour. Businesses, however, must
also do their part to prevent the production and sale of
counterfeit products.