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Unorganised auto parts gain market, counterfeit goes down

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IANS New Delhi
Last Updated : Mar 23 2017 | 5:14 PM IST

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 here on Thursday, the penetration of counterfeit spares has drastically reduced from 36 per cent in 2010-11 to 5 per cent in 2016-17 and their place has been taken up by U-parts (parts from unorganised segment).

According to the study, usage of original spares totals around 40 per cent 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 per cent of the total components consumption while the remaining 60 per cent 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 per cent of the total consumption, while the tractor segment exhibits the highest consumption of U-parts at 40 per cent.

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

--IANS

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First Published: Mar 23 2017 | 5:04 PM IST

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