Sale of fake car parts is widespread, Indian gov says

The Indian government has admitted that the sale of counterfeit car parts in the country is a common practice.

Asked in parliament if the sale of fake auto parts is widespread the Minister of Heavy Industries and Public Enterprises replied, “yes, madam.” The admission follows a report by the Associated Chambers of Commerce and Industry in India (Assocham) into the cost of counterfeiting.

Assocham concluded that counterfeiting cost India close to $900m in lost sales during the past fiscal year and called on the government to strengthen deterrents. As its stands Assocham believes punishments are insufficient to check the spread of counterfeit products.

The Indian Minister defended the government’s record during questioning in parliament though. In the defence the Minister pointed to raids, seizures and criminal actions against defaulters as evidence authorities are fighting back against counterfeiters.

Despite these efforts the market for fake car parts in India continues to thrive. A 2007 study by Indian automotive groups claimed counterfeit parts accounted for one-third of the total market.