SME auto components gain market, counterfeit goes down

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SME Times News Bureau | 24 Mar, 2017
The usage of counterfeit auto components has gone down drastically in the last seven years while their place has been taken over by unorganised players, said a study by Automotive Component Manufacturers Association of India (ACMA).

According to an ACMA statement issued in New Delhi on Thursday, the penetration of counterfeit spares 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.

According to the study, 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.