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Unorganized-parts have replaced counterfeit auto components drastically in the last few yrs: ACMA Study

Updated: Mar 24, 2017 07:25:45am
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Unorganized-parts have replaced counterfeit auto components drastically in the last few yrs: ACMA Study

New Delhi, Mar 24 (KNN) The usage of counterfeit auto spares has drastically reduced in the last seven years and their place has been taken up by parts from unorganised segment, majorly from Small and Medium Enterprise (SME) sector, highlights a study.

According to a study conducted by Automotive Component Manufacturers Association of India (ACMA), the penetration of counterfeit spare parts has drastically reduced from 36 percent in 2010-11 to 5 percent in 2016-17 and their place has been taken up by U-parts (parts from unorganised segment), majorly from Small and Medium Enterprise (SME) sector.

The study says that usage of original spares totals around 40 percent of the consumption in the case of passenger vehicle segment, while in the commercial vehicles segment the Independent Aftermarket (IAM) branded components command around half of the market.

"In the passenger vehicle segment, the genuine OE (original equipment) spares account for around 40 percent of the total components consumption while the remaining 60 percent is split evenly between IAM (Independent After Market) branded parts and U-parts," ACMA said.

As per the study, consumption of IAM branded spares is highest in the commercial vehicles segment, estimated at 50 percent of the total consumption, while the tractor segment exhibits the highest consumption of U-parts at 40 percent.

According to Vinnie Mehta, Director General ACMA, the Indian automotive aftermarket stood at Rs 56,098 crore (USD 8.4 billion) in 2016-17 and expected to touch Rs 75,705 crore (USD 13 billion) by 2019-20.

“The Indian automotive aftermarket stood at INR. 56,098 Crore (USD 8.4 billion) in 2016-17 with a total vehicle parc of 228.7 million across the country. The Indian automotive aftermarket is expected to reach INR. 75,705 Crore (USD 13 billion) by 2019-20 exhibiting a CAGR of 10.5%,” Mehta said.

The study also points that the IAM branded parts consumption is highest in the CV segment, estimated at 50% of the total consumption, while the tractor segment exhibits the highest consumption of U-parts at 40%.

The current total vehicle population in the country is estimated at around 228.7 million vehicles according to State Transport Authorities across the country.

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