Study to Size the Counterfeit Market for Auto Components in India

Study to Size the Counterfeit Market for Auto Components in India
July 2006 Prepared For: Prepared By: Business & Industrial Division, IMRB International

Report flow Background of the Study
Need for Research Definition of Counterfeits Study Objectives Research Methodology & Sampling Approach to determine counterfeit market size in India Estimation of vehicle population Total expenditure on servicing Size of counterfeit component market in India State transport authorities Profile of respondents met Private vehicle owners Commercial vehicle owners

Report flow (contd….) Detailed information on vehicle servicing
Amount spent on last service Choice of service destination Break-up of amount spent in the last service Information on channel members met General profile Key counterfeit hubs in India Stocking of counterfeits Attitude towards auto component replacement Attitude towards counterfeit components Annexure

Background India has been known for its large ‘unorganized’ market which exists across industry segments A large part of this market caters to not just unbranded but also counterfeit products Auto components is one such segment where it is estimated that a large proportion of the market is invaded by counterfeit products Such low quality products have a negative impact on the brand equity of automobile & automotive component manufacturers

Need for Research Therefore, Indian automobile manufacturers wanted to understand and size the counterfeit market to: Develop intervention to curb this market Provide quality products to their consumers Curb the negative impact on their brands Curb the revenue losses suffered due to this market Under the aegis of Society of Indian Automobile Manufacturers (SIAM), automobile majors formed a task force to address this need

Before outlining the methodology used it is imperative to understand how we defined counterfeits for the purpose of this study…

Several products from ‘unorganized’ sector exist in the market today…
Type of Part Examples Genuine Imports Bosch spark plugs not meant for Indian models Genuine Discards Parts discarded from industrial products, ocean vessels, railway wagons etc Used Parts Parts refurbished and reused in vehicles by mechanics Unbranded Parts Parts with no markings or brand names Branded Duplicates Brands in original or copied packaging of OEM Brands with similar sounding names like ‘Assahi’ vs. Asahi Parts with fake markings for ISI/BIS/EN etc Cross Category Duplicates Fenner clutch levers when Fenner does not make clutch levers These are the ones we have focused on for purpose of this research

Research Objectives Primary Objective of the study was to size the counterfeit market for auto components in India

Objectives of the research
Estimate the total repair and servicing aftermarket in India: Authorized Vs other service stations By vehicle category Br geographies By age of the vehicle Estimate the total market of counterfeit auto components Understand the buying behavior of vehicle owners Reasons for choice of a service station Number of trips to a service station per annum Level of influence of the channel member Brand of auto component purchased most often

Objectives of the research (contd…)
Gain an understanding of the market from the channel members Motivators for selling counterfeits Key counterfeit hubs in India Most counterfeited components Map the attitude of owners towards vehicle servicing and counterfeit components Awareness about counterfeit components Knowledge about the damages caused by such components Actions to curb this menace Suggestions and Recommendations To reduce the menace caused by counterfeit auto components

Research Methodology & Sampling

Key stakeholders covered
Supply side: Automobile and auto-component manufacturers and associations Demand side: Private and commercial vehicle owners Private vehicle owners Two and four-wheeler owners Commercial vehicle owners HCV, LCV, Three-wheeler, buses and taxies Auto component channel members Distributors Retailers/Wholesalers Roadside mechanic Authorized service stations Other service stations

Information gathered from each stakeholder
Supply Side: Automobile Component Mfrs MORTH/RTO/Associations Registered vehicle population Volumes & value of auto components in the after market Demand Side: Private Vehicle Owners Commercial Vehicle Owners Components Bought & their details Purchase Cycle for Parts Motivators & Barriers to Purchase Counterfeits Type of brands stocked Key components being counterfeited Motivators & Barriers to sell counterfeits Channel: Distributors, Dealers & Retailers Mechanics Service Stations

Therefore, the research methodology involved meeting each of these stakeholders to gauge extent of counterfeiting…

Module I – Supply Side Desk Research
Collation of information on industry available in public domain like publications, websites etc Product portfolio of large organized auto component manufacturers Collation of information on initiatives taken by automobile and auto component manufacturers to curb counterfeit menace Expert Interviews: Depth Interviews with the following Associations & Experts like SIAM, ACMA, Ministry of Road Transport & Highways (MORTH) etc Manufacturers of Automobiles & Auto components State Transport Authorities

Module I – Sample size covered
Segment Sample Automobile Manufacturers 10 Associations & Experts (SIAM, ACMA, MORTH etc) 2 State Transport Authorities Workshops OEM Auto Component Manufacturers Total 24 These interviews helped us understand: Fast moving & frequently replaced parts Universe of automobiles (2-wheeler, 4-wheeler etc) Size of organized auto component market Expert opinion on size of counterfeit market & its drivers

Module II – Demand Side In this module, both private and commercial vehicle owners were met across various identified locations mentioned below:- Population Classification Cities More than 40 lakhs Metros Delhi, Mumbai, Chennai and Kolkata 10 – 40 lakhs Non-metros Pune, Lucknow, Ludhiana and Kochi 5 – 10 lakhs Other NM Chandigarh, Trichy, Guwahati and Jamnagar 1 – 5 lakhs Small Towns Chapra and Gulbarga

Module II – Demand Side Private and commercial vehicle owners were grouped by type of vehicle owned Face to face structured interviews were conducted with:- Private Vehicle Drivers & Owners Cars (Across various segments) Motorcycles Scooters Commercial Vehicle Drivers & Owners Trucks Buses Three Wheelers Light Commercial Vehicles Taxis Four Wheeler

Module II – Demand Side: Segment of Private cars covered during the survey
Vehicle Category Type of Vehicles Segment A Maruti 800, Premier Padmini Segment B Santro, Zen, Wagon R, Alto, Indica, Uno Segment C Esteem, Indigo, Palio, Ikon, Getz Segment D Opel Astra, Honda City, Lancer, Optra etc Segment E Mercedes, BMW etc MUVs/SUVs Tata Safari, Tata Sumo, Honda CRV, Chevrolet Tavera, Maruti Omni

Sampling for Vehicle Owners – Module II
As service related information was to be gathered only those vehicle owners were met whose vehicles were no longer under original warranty Thus, interviews were conducted with the following vehicle owners: Private vehicles >3 years age Vehicle owner Vehicle Driver Commercial Vehicles > 1 years age Fleet Owners Vehicle Drivers

Module III – Auto component channel members
The channel members covered during the study are: Distributor Wholesaler/Retailer Authorized service station Other service station Roadside mechanics

2321 private vehicle owners were met across 14 cities spread across 11 Indian states
Base: 2321 private vehicle owners Distribution of sample by town class Distribution of sample by vehicle ownership Equal percentage of respondents representing metro and non metro (including Small towns) locations across the country were covered Over 51% of all private vehicle owners met owned a four-wheeler only as compared to 33% owning only a two-wheeler Around 16% of the respondents met owned both vehicle types

1089 commercial vehicle owners were met covering over 2390 commercial vehicles of all types
Base: 1089 commercial vehicle owners Distribution of sample by town class Distribution of commercial vehicle owners by vehicle type Over 58% of the commercial vehicle owners were covered in metropolitan cities About 28% belonged to non-metros Another 9% belonged to other NM and rest 5% to small towns Equal representation of owners owning different types of commercial vehicles in the sample covered HCVs and taxis were further divided into categories based on the axle load and care segment respectively

Broad approach used for determination of counterfeit components market size

Total expenditure on vehicle servicing in India. - Private vehicles
Total expenditure on vehicle servicing in India - Private vehicles - Commercial vehicles

Assumptions for calculation of vehicle population
Total number of registered vehicles in India till 2003 were collected from MORTH Calculation of number of running vehicles Private 2 wheelers & 4 wheelers 80% of the vehicles purchased in last 20 years are still running 10% of the vehicles registered before that are still running Based on recent data estimates 10% of the 4 wheelers running are taxies (IMRB in-house data) Almost 34 lakh 4 wheeler purchased in last two years not considered in the calculation Commercial vehicles 80% of the vehicles purchased in last 10 years are still running The number of running vehicles thus are…

Estimated number of running vehicles in India - By Geography
All Nos in Thousands

Commercial** vehicles = Rs.17970 crores
Combined after-sales market for repair in India for both private and commercial vehicles is in excess of Rs crores Total service aftermarket – By vehicle type Private vehicles* = Rs.8542 crores Commercial** vehicles = Rs crores *Note: Universe estimates for Segment E cars is not available ** Universe estimates of three-wheelers is not available

North, South and Western regions have almost equal share in the total service aftermarket of private vehicles however Eastern region is lagging far behind Total service aftermarket – By geographies Private vehicles = Rs.8542 crores Only 13% of the total service aftermarket is contributed by the Eastern region This can be as a result of low automobile sales in the east Close to 30% of the service aftermarket is contributed by other 3 regions of the country

Commercial vehicles = Rs.17970 crores
Around 60% of the total aftermarket service expenditure for private vehicles is on components as compared to 48% in case of commercial vehicles Break-up of aftermarket service – By vehicle ownership Private vehicles = Rs.8542 crores Commercial vehicles = Rs crores

Break-up of aftermarket service expenditure by vehicle type
Private vehicles Commercial vehicles

Thus, combined expenditure on aftermarket component purchase for both private and commercial owners is more than Rs crores Total expenditure on components – By vehicle type Private vehicles = Rs.5074 crores Commercial vehicles = Rs.8513 crores

Commercial vehicles = Rs.8513 crores
At the same time share of authorized stations among private vehicle owners is around 22% as compared to 15% of commercial vehicles Total expenditure on components – By vehicle ownership & service destination Private vehicles = Rs.5074 crores Commercial vehicles = Rs.8513 crores

Total expenditure on components – By geography
No major variation across regions for private vehicle owners in choice of service station for component purchase Private vehicles Total expenditure on components – By geography The share of authorized service stations across regions is in the range of 17% to 27% Highest share of 27% is in the eastern region Lowest share of 17% is in the southern region In the case of northern region it is close to 21% and about 25% in the case of western region

Break-up of component expenditure in authorized vis-à-vis other service stations – By vehicle type
Private vehicles Commercial vehicles

Counterfeit auto components market in India - Private vehicles - Commercial vehicles

Definition of counterfeits?
Counterfeit components are the illicit duplicates of genuine components being manufactured by unorganized sector players illegally Counterfeit manufacturers do not pay any: Excise duties Sales tax/VAT Cater to the after market replacement demand across the country They infringe the IPR of organized sector component manufacturers Have limited capital and technological knowledge

Assumptions used for estimation of counterfeit component market
Vehicles going to Authorized service stations buy only genuine components It is assumed that private vehicles in first three years and commercial vehicles in the first year are under warranty and/or free service contract and hence, usually do not visit unauthorized service station (this was also used as the pre condition for interviewing) A user with similar running habits and having vehicle of same age would be spending similar amount on maintenance A user will be purchasing similar brand of auto components each time he visits a service station of his choice

Case Study: Counterfeit auto component market size estimation for scooters in India
Total expenditure on vehicle repair by private vehicle owners in the last service (normal or accidental) Percentage break-up on Components vs. Servicing % break-up at Unauthorized Service Stations (non OEM approved) vs. Authorized Total number of trips to any service station (Unauthorized or authorized) by vehicle owner per annum Likelihood of buying a genuine component Vs a counterfeit Market Size for Counterfeit = % Vehicles serviced at unauthorized service stations x Average spend on components x Estimated spent on counterfeits x Total number of trips/annum x Vehicle Population

Expenditure per trip on service by scooter owners – Authorized Vs Other service stations
Authorized service stations Other service stations Components Rs. 369 Rs. 338 Labour Rs. 154 Rs. 97 Rs. 112 Rs. 125 Consumables Rs. 635 Rs. 542 Source: IMRB research

Percentage of scooter owners visiting Authorized Vs Other service stations
Source: IMRB research In case of scooters, only 10% of the vehicles were taken to company authorized service station in the last service Highest percentage of 14% being in West followed by 11% in North Only 4% of the scooter owners in the East took their vehicle to company authorized service station for last repair Scooter owners preference to other service stations is clearly highlighted by the above figures

Total number of trips to service station in a year - Authorized Vs Other service stations
Source: IMRB research Observation: Not only the owner buying components from un-authorized service stations makes additional trips but also spend 3% higher on components in a typical years!

Likelihood of buying a genuine component
Respondent was asked to describe the component fitted in the last service The following statements were exposed to the respondent: Statement describing the type of component purchased Code A genuine (original/certified by the manufacturer) component was refitted such as Maruti Genuine Parts (MGP) in case of Maruti 1 A duplicate/refurbished/local component was fitted 2 A few were genuine components and rest were local/other brands 3 I am not too sure if the original/genuine component was fitted 4

Statement describing the type of component purchased
Weight-age given to each statement in order to determine the market of counterfeit components Scenario analysis: The following 3 scenarios have been developed based on variation in weight-ages: Higher estimate Realistic estimate Lower estimate Statement describing the type of component purchased Scenario Analysis Lower Realistic Higher A genuine (original/certified by the manufacturer) component was refitted 0% 25% 50% A duplicate/refurbished/local component was fitted 100% 35% A few were genuine components and rest were local/other brands I am not too sure if the original/genuine component was fitted

…and the counterfeit market is about …
The counterfeit market for scooters could be anything between 40-60% of the total aftermarket i.e. Rs Crores

Counterfeit components constitute about 35% - 51% of private vehicle components after market
The counterfeit market can be anywhere between Rs 1750 – 2572 crores which constitutes around 35% - 51% of the total component aftermarket

Almost similar methodology was used for computation of counterfeit market for commercial vehicles
Average annual expenditure on vehicle repair by commercial vehicle owners (normal or accidental) Percentage break-up on Components vs. Servicing % break-up at Unauthorized Service Stations (non OEM approved) vs. Authorized Likelihood of buying a genuine component Vs a counterfeit Market Size for Counterfeit = % Vehicles serviced at unauthorized service stations x Average spend on components x Estimated spent on counterfeits x Vehicle Population

Only difference was capture of monthly service expenditure against amount spent on the last service
All the assumptions specified earlier for computation of counterfeit components market of private vehicles are applicable in the case of commercial vehicles also Average monthly expenditure on service was captured and annual maintenance expenditure was calculated for: Authorized service station users Non-authorized service stations Respondents were then asked to recall last few component purchases and give an approximate break-up of amount spent on the following brand of components OEM approved genuine parts Other brands Local brands Duplicate brands

Brand of auto component purchased
Weight-age given to each component brand for determination of counterfeit market Scenario analysis: The following 3 scenarios have been developed again: Higher estimate Realistic estimate Lower estimate Brand of auto component purchased Scenario Analysis Lower Realistic Higher OEM approved genuine parts 0% 25% Other brands 50% 100% Local brands Duplicate brands

In case of commercial vehicles, counterfeit components account for almost 1/3rd of the total component aftermarket! The counterfeit market can be anywhere between Rs 2644 – 3750 crores which constitutes around 31% - 44% of the total component aftermarket of commercial vehicles

The counterfeit component market in India could be contributing more than 1/3rd but less that half of the total aftermarket component sales The counterfeit market can be anywhere between Rs 4395 – 6322 crores which constitutes around 32% - 47% of the total component aftermarket !

Also according to experts, counterfeit components should constitute not more than 30%-40% of the total replacement market in India Source: Depth Interviews Size of auto components industry in India : Rs crores (approx) Share of OE sales and exports ~ Rs crores (approx) Share of replacement/after market ~ Rs crores (approx) 30% of total replacement market ~ Rs 3600 crores 40% of total replacement market ~ Rs crores So according to the experts, the market of counterfeit components in India should be somewhere between Rs to Rs crores The primary research estimates are slightly higher probably because older vehicles are not going to authorized service stations

Factors causing high penetration of counterfeit components in the replacement market
Higher margins from counterfeit components Margins can be as high as 40% – 50% in case of some brands No pressure on the margins in future Short supply of OE components Irregular supply of components Higher turnaround time Aggressive pricing policy of the organized sector Price difference can be as high as 70% as counterfeit manufacturers evade government taxes and use inferior material Mechanics and garages also gain as a result of selling counterfeit and earning higher margins Lack of awareness among customers Inability of customers to differentiate Lack of education among the customers

Factors causing high penetration of counterfeit components in the replacement market (contd)
High trust placed on other service stations Blind trust on other service stations who tend to push counterfeit components In case of commercial vehicles, lack of options available on highways supplying genuine components Commercial vehicle owners have no option but to trust their drivers about the brand of component purchased Easy availability of cheap scrap Partially destroyed components rejected by quality team of the OEM In case of commercial vehicles, scrap sales from STC and other government institutions through auction Availability of second hand high quality printing presses Easy to copy any type of packaging Inadequate government regulations and norms

State Transport authorities – Are counterfeits entering institutional sales also?

It seems that even state transport authorities are not totally shielded from counterfeit components
70 – 80% 20 – 30% Auto component/ Automobile manufacturers ASRTU (Association of State Road Transport Undertakings) Components are broadly divided into 2 categories CFT : Critical function and safety related NCFT: Non-critical function related The former type are sourced directly from the automobile/auto component manufacturer Latter is sourced from vendors chosen by ASRTU on rate contracts ASRTU has fixed norms for choosing the vendor

In case a commercial vehicle breaks down on a highway, the driver has the authority to purchase the component…the money can be taken from conductor Purchase process of components Through tenders for 18 month period Includes 6 month buffer stock Monthly delivery of components Random checks on components to check the quality of material In case of non-availability of components the regional spares in-charge has the authority to arrange for components from outside Generally it happens in 1-2% of cases and counterfeit components can enter in such cases In case of a sudden breakdown the driver can purchase the components from outside and show the bill to reimburse expenses Although a mobile van facility is most often

Profile of the respondents 1
Profile of the respondents Private Vehicle Owners Two-wheeler owners Four wheeler owners

Motorcycles contribute to over 54% of the total two-wheeler vehicle ownership…with scooters having the rest 46% share Base: 1288 two-wheelers Distribution of sample by ownership type Distribution of sample by two-wheeler segment For the purpose of the study: All types of scooters, scooterettes were clubbed under one broad head as scooters Mopeds were not covered Share of first hand and second hand ownership is almost similar in the case of scooters as well as motorcycles

This is because in recent past, the share of motorcycles in the two-wheeler segment has increased substantially Base: 1288 two-wheelers In the last 5 year period, the ownership of motorcycles has overtaken the ownership of scooters by a huge margin In period, the ownership of motorcycles was more than 150% of the scoter ownership After 2002 the percentage difference has increased to more than 250% The findings are in line with the change in trends in the last 5 year period in the automotive two-wheeler industry

As anticipated average age of the primary user of scooter is much higher than a motorcycle user
Base: 1058 two-wheelers Motorcycles are a vehicle for the young. This statement is vindicated by the fact that: Average age of the primary user of scooter is 37 years as compared to just 32 years in the case of motorcycle The trend is similar across different town classes Can age of the primary user have some significant impact on the type and source of auto component purchased. We will try to find it out during the course of this presentation?

As a result average distance travelled by motorcycle users per weekday is significantly higher as compared to scooter users…. Base: 1058 two-wheelers Average distance covered by a scooter per weekday across locations is 27kms/day but in case of motorcycles it jumps to 34kms/day The average distance covered by a scooter is highest in case of metro cities at 31kms/day and lowest in case of Small cities at 20 kms/day In case of motorcycles the average distance covered is highest in case of other NM cities at 42kms/day and lowest in case of small cities at 22 kms/day

…also on weekends motorcycles cover higher distance as compared to scooters
Base: 1058 two-wheelers Average distance covered by a scooter per day on weekends across locations is 25kms/day but in case of motorcycles it jumps to 30kms/day The average distance covered by a scooter is highest in case of non-metro cities at 28kms/day and lowest in case of small cities at 15kms/day In case of motorcycles the average distance covered is highest in case of other NM cities at 38kms/day and lowest in case of small cities at 16 kms/day

Fair representation of various four-wheeler segments in the sample achieved
Base: 1659 four--wheelers Distribution of sample by four-wheeler segment Distribution of sample by city type Segment A, B and C constituted over 70% of the sample 10% of the vehicles covered belonged to Segment D 16% of the vehicles belonged to SUV/MUV segment and rest 2% of the vehicles belonged to Segment E Over 50% of all four-wheelers covered belonged to Metro cities and 34% to Non-metros

Weekend travel in case of four-wheelers is significantly higher as compared to travel on weekdays….except in small cities Base: 1659 four--wheelers In Kms/day. In case of metros, average distance covered by a four-wheeler per weekday is 26kms as compared to 37kms in case of weekends In non-metros, average distance covered per weekday is 31 kms as compared to 35 in case of weekends In Other NM cities, weekday travel is at 21 kms/day compared to 37kms/day on weekends In small cities, weekday travel is at 22 kms/day compared to 19kms/day in case of weekends

Last Service Details of Private vehicles

Maximum percentage of 4-wheeler owners preferred company authorized service station for last service …however 2-wheeler owners preferred other garages Base: private vehicle owners Over 40% of the four-wheeler owners took their vehicle to company ASS for last service as compared to just 14% owners in case of two-wheelers Maximum percentage of 2-wheeler owners i.e. 43% preferred small/other garage for last service as compared to just 25% in the case of four-wheeler owners After company ASS, over 26% of four-wheeler owners gave preference to large garages as compared to just 12% of the two-wheeler owners Almost 1 out of every 3 two-wheeler owners took their vehicle to roadside mechanic for last service as compared to just 8% of the four-wheeler owners

Now lets look at the service destination choice of two-wheeler owners by region…a high percentage of owners in Western India prefer company ASS Base: wheeler owners There is a startling difference in the choice of service stations between two-wheeler owners from different regions of the country In North, although 15% of the owners went to company ASS for last service but more than 50% of the owners preferred road side mechanic and another 23% went to other/small garage In East, the situation is a lot different. Over 52% of the respondents took their vehicle to small/other garage for repair and just 16% preferred road side mechanics. Only 12% went to company ASS In South, only 9% of the owners went to company ASS and about 60% went to small/other garages. Around 24% of the owners went to road side mechanics for repair

In case of four-wheelers, the variation between regions is not as high as two-wheeler owners
Base: 954 four-wheeler owners An equal percentage of four-wheeler owners went to company ASS in the last service across regions except in West where the percentage drops by 12% - 14% In North, 24% owners preferred small/other garages and 18% went to large garages for servicing and the rest 14% went to mechanics The above trend is very much similar in case of Eastern and Southern four-wheeler owners However, the four-wheeler owners in the Western region seem to be behaving differently from their counterparts in rest of the country. More than 46% of Western owners went to large garages for servicing and just 30% in company ASS

Preference of company ASS decreases with the increase in the vehicle age in case of two-wheeler owners Base: wheeler owners About 21% of the two-wheeler owners who had purchased their vehicle between preferred company ASS for last service as compared about 8%-9% owners having purchased their vehicle before 2000 Preference given to other garages and road-side mechanics is highest in case of owners having purchased their vehicle before 2000 Above findings clearly indicate the decreasing interest of two-wheeler owners in availing the services of company ASS with the increase in vehicle age

Although in case of four-wheelers high percentage of owners prefer company ASS but the preference decreases drastically with the increase in vehicle age Base: 954 four-wheeler owners About 47% of the four-wheeler owners who had purchased their vehicle between preferred company ASS for last service as compared about 33% owners having purchased their vehicle between and just 23% in case of owners owning a vehicle made before 1997 Preference given to large garages is complete opposite to the preference given to company ASS by four-wheeler owners Use of road-side mechanics for servicing is very low among the owners of any vehicle type

Drive transmission and engine related problems have been cited as the Top 2 reasons for last service by both 2-wheeler and 4-wheeler owners Base: private vehicle owners An equal percentage i.e. 30% of four-wheeler owners have cited drive transmission and engine related problems for the last service followed by 17% of the owners who faced suspension problems About 13% of the owners had electrical problems and the rest 10% faced equipments or other problems About 31% of two-wheeler owners have cited drive transmission problems as the reason for the last service followed by 25% who faced engine related problems Close to 16% of the owners faced suspension and electrical problems respectively About 9% owners faced equipment problems and the rest 4% faced other issues

Both 2-wheeler and 4-wheeler owners spent 65% of their total expenditure on purchase of components in the last service Base: private vehicle owners Rs. 797/- Rs. 3759/- Two wheelers Four wheelers The above figures include both accidental as well as normal repair The percentage expenditure on labor and consumables in case of both two-wheeler and four-wheeler owners is almost similar Further break-up of service expenditure in company ASS Vs. other service stations for both two-wheelers and four-wheelers is given later in the presentation

In case of two-wheelers, the average expenditure on service decreases with the increase in the vehicle age Base: wheeler owners Rs. 838/- Rs. 806/- Rs. 742/- This can be as a result of decrease in owners interest towards vehicle servicing with the increase in vehicle age Also, more preference is given to other service destinations such as road side mechanics, small garages etc as the age of the vehicle increases Expenditure on components is the highest in case of vehicles purchased between and lowest in case of vehicles purchased before 1997 However, the expenditure on consumables is highest in case of vehicles purchased before 1997

The trend is absolutely same in case of four-wheelers also…expenditure on consumables is highest in case of vehicles purchased before 1997 Base: 954 four-wheeler owners Rs. 3678/- Rs. 3656/- Rs. 2996/- This again can be attributed to the decrease in owners interest towards vehicle servicing with the increase in vehicle age Also as indicated earlier more preference is given to other service destinations such as large and small garages etc as the age of the vehicle increases Expenditure on components is almost similar in case of vehicles purchased between and However, the expenditure is lowest for vehicles purchased before 1997

In two-wheelers, although the expenditure in company ASS is the highest but the percentage difference w.r.t other service destinations is not very high Base: wheeler owners Rs. 860/- Rs. 818/- Rs. 730/- Rs. 626/- For two-wheeler owners who went to company ASS, the average expenditure on last service was Rs.860/- out of which Rs.569/- was spent on purchase of components In case of large garages, the average expenditure was Rs.818/- out of which Rs.538/- was spent on components which is just 5% less than average expenditure on components in company ASS In case of other garages the % difference in spent on components w.r.t. to company ASS is around 24% whereas the difference in total expenditure is just 15%. In case of mechanics, it is 32% and 27%

Detailed information on the last service for Two-wheelers - Scooters - Motorcycles

Around 69% of two-wheeler users have cited normal breakdown as reason for the last service
Base: 1058 two-wheelers Metro Non- Metro Other NM Small All In case of metro cities, over 71% of the users have cited normal breakdown as reason for the last service followed by 7% of the users who took their vehicle for service as a result of accidental break down In non-metros, 60% cited normal breakdown and 6% as accidental breakdown In other NM, 69% cited normal breakdown and 5% as accidental In small cities, 86% cited normal breakdown and just 1% as accidental Over 25% of all two-wheeler owners claim to have never experienced any type of breakdown

In scooters, drive transmission problems has been the primary nature of repair across all locations followed by engine related issues Base: 327 scooters In case of metro cities, more than 30% of the vehicles were serviced last time as a result of engine related problems as compared to just 17% in non-metros But in metros only 29% of the vehicles were serviced due to drive transmission problems as compared to over 44% vehicles in NM In case of other NM cities, around 24% of the vehicles were serviced due to engine problems compared to 38% in small towns In case of other NM around 30% of the vehicles were serviced due to drive tsn problems compared to 38% in small

And in case of motorcycles also drive transmission problems has been cited as the primary reason for repair Base: 315 motorcycles In case of non-metro cities, maximum number of vehicles i.e. 37% have cited suspension/braking problems as the primary reason for repair last time In case of metro cities this percentage is only 16% and ranks fourth in reasons cited for last service In case of other NM cities and small cities, drive transmission and engine related problems are the top 2 problems cited for last service Electrical and suspension/braking related problems rank 3rd and 4th respectively

In case of scooters, percentage of users who took their vehicle to Company ASS for the last service is just 10%...highest being in non-metros Base: 327 scooters In case of metros, only 8% of the vehicles were taken to company ASS for last service as compared to 14% in case of non-metros In case of other NM cities it is 12% and just 5% in case of small cities In case of metro cities, maximum number of vehicles i.e. 46% went for repair to small garages compared to 21% in case of non-metro cities Because over 56% of the non-metro users preferred road-side mechanics for repair as compared to 29% in case of metros In case of other NM cities and small cities, a very high percentage of users preferred small garages for repair

…and Year of Make of the scooter has very less bearing on the servicing destination chosen by the vehicle users Base: 327 scooters Year of make of the vehicle has very little bearing on the selection of the service destination: Around 16% of vehicles made in 3 year period of were taken to Company ASS for repair as compared to 10% of vehicles made before 1991 Over 9% of vehicles made in 3 year period of were taken to large garages for repair as compared to 10% of the vehicles made in Again over 36% of vehicles made before 1993 were taken to road side mechanics for the last service

But in case of motorcycles, the percentage of vehicles serviced at Company ASS is comparatively higher… however not as high as other service options Base: 315 motorcycles In case of metros, over 20% of the vehicles were taken to company ASS for last service as compared to 19% in case of non-metros In case of other NM cities it is 19% and just 8% in case of small cities In case of metro cities, maximum number of vehicles i.e. 44% went for repair to small garages compared to 23% in case of non-metro cities Because over 44% of the non-metro users preferred road-side mechanics for repair as compared to 21% in case of metros In case of other NM cities all the service options were given almost equal importance but in small cities more than 83% users preferred small garages

In case of motorcycles, the age of the vehicle has some impact on the decision of taking the vehicle to company ASS for servicing Base: 315 motorcycles Around 24% of vehicles made in 3 year period of were taken to Company ASS for repair as compared to none in the case of vehicles made before 1991 For rest of the service destinations the weight-age given is almost equal Over 48% of vehicles made in 3 year period of were taken to small garages for repair as compared to 45% of the vehicles made in Again over 24% of vehicles made before 1993 were taken to road side mechanics for the last service

In scooters, average expenditure on components is highest in non-metros….as a result of higher percentage of vehicles being serviced in Company ASS Base: 327 scooters Rs.332 Rs.388 Rs.227 Rs.235 In Rs In case of metros and non-metros, over 51% of the users spent less than Rs.200 on purchase of components in last service But in case of non-metros over 13% of the users spent more than Rs.800 on purchase of components compared to just 7% in the case of metros In case of other NM, over 72% of the users spent less than Rs.200 on auto components as compared to 64% in the case of small Also in case of small cities more than 11% of the users spent more than Rs.800 on components compared to just 3% in the case of other NM

Might be a very big deterrent to price sensitive Indian vehicle users.
As scooter users spend approximately 50% higher on components in company ASS as compared to other service options Base: 327 scooters Might be a very big deterrent to price sensitive Indian vehicle users. In Rs. Users who took their vehicle to company ASS for last service spent on an average Rs.517 on purchasing components as compared to: Rs.344 in case of large garages Rs.311 in case of small garages Rs.296 in case of road side mechanics Expenditure on labor and consumables is also highest in case of company ASS This might be a big deterrent for scooter users to avail the services of company ASS

But in case of motorcycles, the average spent on components is highest in other NM….followed closely by metros and non-metros locations Base: 315 motorcycles Rs.484 Rs.486 Rs.496 Rs.381 In Rs In case of metros over 43% of the users spent less than Rs.200 on purchase of components in last service as compared to 48% in case of non-metros And in case of non-metros over 11% of the users spent more than Rs.800 on purchase of components compared to just 9% in the case of metros In case of other NM, over 57% of the users spent less than Rs.200 on auto components as compared to 50% in the case of small Also in case of other NM more than 18% of the users spent more than Rs.800 on components compared to 17% in the case of small cities

As there is very little gap between the average expenditure on components in Company ASS Vs other service stations in case of motorcycles Base: 315 motorcycles In Rs. Users who took their vehicle to company ASS for last service spent on an average Rs.448 on purchasing components as compared to: Rs.418 in case of large garages Rs.435 in case of small garages Rs.300 in case of road side mechanics Expenditure on labor and consumables in case of company ASS is almost comparable with other service options As a result the average expenditure on components is higher in Other NM and non-metros as compared to metros

A large percentage of all two-wheeler users claim to have purchased genuine components in last service…but did they? Base: 1058 two-wheelers In case of metros over 72% of the users claim to purchase genuine components in last service as compared to 63% in case of non-metros And in case of non-metros over 10% of the users purchased duplicate components compared to 7% in the case of metros In case of other NM and small cities, over 60% of the users claim to purchase genuine components Also in case of small cities more than 16% of the users purchased duplicate components compared to 10% in the case of other NM

Last Service Details for Four-wheelers

Owner of the vehicle is the primary decision maker about service requirements…only 6% of the vehicles are taken by driver for repair Base: 1550 four--wheelers Primary decision maker about repair and service requirements Who takes the vehicle for servicing? Over 95% of the vehicle owners take the decision about repair and servicing requirements In case of 3% of the vehicles, primary users take the decision about servicing And in only 2% of the vehicles, family members are responsible for service decisions Again when it comes to taking the vehicle for servicing a majority i.e. 85% of the owners do it themselves 6% of the vehicles are taken by the driver for servicing and 5% by the users Only 4% of the vehicles are taken by family members

Around 57% of four-wheeler users have cited normal breakdown as reason for the last service…followed by 10% accidental cases Base: 1550 four--wheelers Metro Non- Metro Other NM Small All In case of metro cities, over 61% of the users have cited normal breakdown as reason for the last service followed by 10% of the users who took their vehicle for service as a result of accidental break down In non-metros, 43% cited normal breakdown and 12% as accidental breakdown In other NM, 76% cited normal breakdown and 6% as accidental In small cities, 51% cited normal breakdown and just 6% as accidental Over 33% of all four-wheeler owners claim to have never experienced any type of breakdown

Normal break-down frequency in case of four-wheelers ranges between 5
Normal break-down frequency in case of four-wheelers ranges between 5.5 – 6.5 months Base: 961 four--wheelers 5.74 mths 6.04 mths 5.45 mths 6.46 mths In case of metro cities, over 52% of the users have reported 4-6 months as frequency of normal breakdown as compared to 42% in the case of non-metros Around 30% of the vehicle owners in both metros and non-metros have reported 1-3 months as frequency In case of Other NM cities, over44% of the users have reported 4-6 months as frequency as compared to just 21% in the case of small Over 12% of the vehicle owners in small towns have reported more than 12 months as frequency

Like in the case of two-wheelers, engine and drive transmission related problems were the primary reason for repair in four-wheelers also Base: 961 four--wheelers In case of metro cities, more than 33% of the vehicles were serviced last time as a result of engine related problems as compared to just 22% in non-metros Also in metros around 24% of the vehicles were serviced due to drive transmission problems as compared to over 25% vehicles in NM Suspension/braking and equipment problems were the other key areas of concern In case of other NM cities, around 28% of the vehicles were serviced due to engine problems compared to 36% in small towns In case of small cities, over 28% of the vehicles were serviced as a result of other problems

Maximum percentage of vehicles across locations were serviced at Company ASS…use of road side mechanics for servicing is minimal Base: 961 four--wheelers In case of metro cities, more than 37% of the vehicles were serviced at company ASS as compared to 42% in the case of non-metros Over 32% of metro vehicles were serviced at large garages compared to 19% in non-metros In case of other NM cities, around 50% of the vehicles were serviced at company ASS compared to 25% in small towns Also in case of other NM cities, equal percentage of vehicles were serviced at large and small garages But in case of small towns, more than 50% of the vehicles were serviced at small/some other garages

Percentage of vehicles serviced at company ASS increases as we move up the four-wheeler category
Base: 961 four--wheelers Only 28% of segment A vehicles were serviced at company ASS compared to 67% in case of Segment E vehicles Gradual increase in percentage of vehicles being serviced at company ASS when we move from Segment A to Segment E In case of segment E, after company ASS the next preferred service destination is small garages and road-side mechanics None of the Segment E car owners availed the services of a large garage Thus, it can be said that owners either prefer spending heavy amount by taking the vehicle to company ASS or prefer saving money completely by availing the services of mechanics and small garages

As a result average expenditure on last service also increases as we move up the four-wheeler category Base: 961 four--wheelers In Rs. All the figures include both accidental and normal repair Average expenditure in last service for Segment A cars is Rs.1821 and in case of Segment B & C cars it jumps by 35% to reach a figure of Rs.2446 Average expenditure for SUVs/MUVs is around Rs.2413 which is very similar to the figures of Segment B & C cars In case of segment D cars the average expenditure is more than 50% higher as compared to four-wheelers belonging to Segment B & C As expected the average expenditure in case of Segment E cars is the highest at Rs.5414

Average expenditure on components is more than 50% higher in company ASS as compared to the other service options Base: 961 four--wheelers In Rs. Users who took their vehicle to company ASS for last service spent on an average Rs.2964 on purchasing components as compared to: Rs.1889 in case of large garages Rs.1823 in case of small garages Rs.1594 in case of road side mechanics Expenditure on labor and consumables is also highest in case of company ASS This acts as a deterrent to price sensitive owners who own lower segment four-wheelers

Additional Regular Service Details for Four-wheelers

Awareness about various maintenance and service contracts is lacking…
Awareness about various maintenance and service contracts is lacking….especially in the case of small cities Base: four--wheelers In case of metro cities, over 39% of the users are aware about AMCs and over 32% are aware about extended warranty Around 20% of the users are also aware about equipment contracts In case of non-metro cities, over 47% of the users are aware about AMCs and extended warranty Around 33% of the users are also aware about equipment contracts In case of other NM cities, over 30% of the users are aware about AMCs and over 22% are aware about extended warranty Around 13% of the users are also aware about equipment contracts

Out of those who are aware only 16% have subscribed to such contracts across locations
Base: four--wheelers In case of metro cities, over 18% of the users have subscribed to either of the maintenance contracts In case of non-metro cities, over 15% of the users have subscribed In case of other NM cities, over 13% of the users have subscribed In case of small cities, none of the users had subscribed to such maintenance contracts

Assurance of genuine spares and low hassle of maintenance are the top 2 motivators for subscribing to a maintenance contract Base: four—wheeler users Top Box score In case of metro cities, over 31% of the users have given assurance of trained man-power in company ASS as the most important for entering into a maintenance contract In case of non-metros, the percentage of such users increases 43% In case of other NM, it is 17% Assurance of trained man-power, trust on OEM and value for money are the other important motivators

Expensive contracts and costly genuine spares are the key de-motivators preventing users from subscribing to such contracts Base: 600 four—wheeler users Top Box score In case of metro cities, over 42% of the users perceive such contracts to be expensive and hence do not subscribe Another 39% of the users consider genuine spare parts being used in company ASS to be expensive In case of non-metro cities, over 29% of the users perceive such contracts to be expensive and in case of other NM cities this percentage increases to 42% Use of vehicles for general purpose, existing relationship with OSS and promptness of service are other key de-motivators cited by the respondents

Profile of the respondents 2. Commercial Vehicle owners. - Buses
Profile of the respondents Commercial Vehicle owners - Buses - HCVs and LCVs - Taxis - Three-wheelers

1089 commercial vehicle owners were met covering over 2390 commercial vehicles of all types
Base: 1089 commercial vehicle owners Distribution of commercial vehicle owners by vehicle type Base: 1089 commercial vehicle owners Distribution of sample by town class Base: 2394 commercial vehicles Distribution of total number of commercial vehicles covered by type Over 58% of the commercial vehicle owners covered belonged to metropolitan cities About 28% belonged to non-metros Another 9% belonged to other NM and rest 5% to small towns Equal representation of owners owning different types of commercial vehicles in the sample covered HCVs and taxis were further divided into categories based on the axle load and care segment respectively

Further classification of HCVs and taxis owners met during the course of the study
Base: 221 HCVs owners 229 Taxis owners Break-up of HCVs covered by axle load Break-up of Taxis covered by segment In case of HCVs, over 60% of the vehicle owners covered owned 7.5 – 12 tones axle load HCV About 25% owned tones axle load category About 11% owned tones axle load category and rest 4% in more than 25 tones category In case of taxis, more than 47% of the vehicle owners owned Segment B cars which includes Indica, Uno 25% belonged to Segment A which includes Omni, Fiat And about 24% in Segment C which includes Indigo, Contessa, Ikon, Esteem and Baleno

Approximately 69% of all the commercial vehicle owners covered owned only 1 vehicle…16% owned 2-3 vehicles Base: 1089 commercial vehicle owners In case of bus owners, about 43% owned only 1 vehicle: Around 20% owned 2-3 vehicles and about 19% owned 4-5 vehicles Over 19% owned more than 5 vehicles In case of HCVs, about 58% owned only 1 vehicles: Around 20% owned 2-3 vehicles and rest 22% owned more than 3 vehicles Over 73% LCV owners, 79% taxi owners and 91% 3-wheeler owners owned only 1 vehicles

Over 48% of all commercial vehicles are primarily being used for intrastate travel
Base: 1089 commercial vehicle owners In case of buses, about 52% of the vehicles are used for intrastate travel, followed by 35% of the vehicles being used for interstate and the rest 13% for both In case of HCVs, only 38% of the vehicles are used for intrastate travel, followed by 36% of the vehicles being used for both inter and intrastate; rest 26% for interstate travel only In case of LCVs, 41% being used for intrastate and 25% for interstate; rest 24% for both In case of taxis, 33% being used for intrastate and 39% for interstate; rest 28% for both

Service Details for Commercial Vehicles

Only 23% of all commercial vehicle owners are aware about service contracts…and out of those only 3% are subscribing to such contracts Base: 1089 commercial vehicle owners 36% 23% 22% 21% 18% 14% Maximum awareness is among the bus owners, where about 36% of the respondents are aware of such contracts and about 6% have entered into such contracts A high percentage of bus owners covered owned more than 1 vehicle In case of HCV owners, about 22% are aware of such contracts and only 2% have entered In case of LCV owners, 18% are aware and 3% have entered In case of taxis also 21% are aware of such contracts but only 1% have entered This can be because over 79% of the owners covered owned only 1 vehicle

Average distance travelled in a month is highest in case of busses followed by HCVs
Base: 1089 commercial vehicle owners In kms/month. 9504 kms 7461 kms 4354 kms 3956 kms 2719 kms Average distance traveled by a bus (including inter and intrastate) in a month is 9504 kms In case of HCVs, the average distance traveled by a vehicle in a month is 7461 kms In case of LCVs the average distance drops down to 4354 kms/month In case of taxis (including all segments), average distance traveled in a month is 3956 kms Average distance traveled in a month is lowest in the case of three-wheelers at 2719 kms

Average distance covered by HCVs of different capacities ranges from 6500 – 9300 kms per month
Base: 221 HCV owners In kms/month. 6530 kms 9342 kms 8083 kms 7555 kms In case of HCVs with axle load between tones, average distance covered in a month is 6530 kms And in case of HCVs with axle load between tones, it increases to 8083 kms/month In case of HCVs more than 25 tones of axle load, average distance covered is 7555 kms/month The highest average distance covered in a month is 9342 kms by HCVs of axle load tones

As a result of heavy travel, the frequency of service in case of buses is highest at once a week
Base: 1089 commercial vehicle owners In case of buses, around 34% of the vehicles are serviced (includes normal tuning, washing) atlleast once a week Around 12% of vehicles are serviced once in 3 weeks and another 15% once in a month In case of HCVs, the maximum number of vehicles i.e. 43% are serviced once in more than 6 week period In case of LCVs, taxis and three-wheelers the trend is quite similar

Large and small garages are most preferred service destinations for most of the commercial vehicle owners…use of company ASS is highest in taxis Base: 1089 commercial vehicle owners In case of buses, only 17% of the vehicles are sent to company ASS for repair Maximum vehicles i.e. about 57% of the vehicles are sent to large and small garages for repair In case of HCVs, about 12% of the vehicles are sent to company ASS, maximum vehicles being serviced at large and small garages In case of taxis, over 23% of the vehicles are sent to company ASS for repair About 46% are being serviced at small garages and about 16% in large garages

Maintenance expenditure/ Km (INR)
As expected, average maintenance expenditure per Km is highest in HCVs followed by buses Base: 1089 commercial vehicle owners Maintenance expenditure/ Km (INR) In case of buses, average maintenance expenditure per km is Rs.1.25 This included both inter and intra state buses In case of LCVs, the average expenditure is at Rs.1.06 In case of taxis, it is at Rs.1.08 and in case of 3-wheelers is at Rs.0.40

Maintenance expenditure/ month (INR)
And it has definite impact on the average monthly expenditure on maintenance which is again highest in case of HCVs Base: 1089 commercial vehicle owners Maintenance expenditure/ month (INR) In case of buses, average monthly expenditure on maintenance is about Rs.10200/- In case of HCVs, average monthly expenditure is the highest at about Rs.12800/- In case of LCVs, average monthly expenditure is almost 1/3rd of an HCV at Rs.4070/- For taxis, average monthly expenditure is around Rs.3200 In case of 3-wheelers, it is the lowest at Rs.940/- only

About 50% of the monthly expenditure incurred on maintenance is spent on components
Base: 1089 commercial vehicle owners In case of buses, about 50% of the monthly expenditure incurred on maintenance is spent on components About 21% on labor and rest 29% on consumables In case of HCVs, about 46% is spent on components About 20% on labor and rest 34% on consumables In case of other commercial vehicles also, the trend is very similar

Drive transmission and suspension related components are replaced most often…engine components take the third spot Base: 1089 commercial vehicle owners In case of buses, about 43% of the vehicles face engine related problems most often About 25% face suspension problems In case of HCV, about 33% of the vehicles face engine related problems most often About 24% face suspension problems The trend is more or less similar for other type of components also

About 60% of the total expenditure on components is on OEM genuine type…claim commercial vehicle owners Base: 1089 commercial vehicle owners In case of buses, about 18% of the amount is spent on purchase of other brands and about 11% on local brands Around 3% is spent on purchase on duplicate components In case of HCVs, the trend is almost similar except the spent on duplicate components which increases to 6% The trend in LCVs is also very similar In case of taxis and 3-wheelers, the average expenditure on duplicate components increases to 8%

Additional Service Details for Commercial Vehicle commuting on highways

In case of an emergency breakdown on a highway, owner of the vehicle takes the decision about the servicing requirements in majority of the cases Base: 661 commercial vehicle owners About 73% of the bus owners are responsible for taking servicing decision in case of an emergency In rest 27% of the cases, salaried driver of the vehicle takes the decision himself In case of HCVs, around 81% of the owners take such a decision In 19% of the cases, the driver is given the freedom to take a decision In case of taxis also, the trend is almost similar to HCVs

Maximum percentage of vehicles were serviced at small garages and road-side mechanics when such an emergency had happened last time Base: 661 commercial vehicle owners Although in case of buses and taxis, about 16% of the owners/drivers took the vehicle to company ASS for servicing but still maximum preferred small garages and road-side mechanics Can this be a case of poor network of company ASS on some of the national highways across the country Only 9% of the HCV owners/drivers took their vehicle to company ASS About 30% of the owners took their vehicle to small garages and road side mechanics

In maximum percentage of emergency cases for HCV and bus owners, the driver showed a kuccha bill to the owner for reimbursement of service expenses Base: 661 commercial vehicle owners In case of taxi owners, about 38% were driving the vehicle when it happened last time and made the payment then and there But after that about 20% of the owners reimbursed the expenses to the driver when a kuccha bill (made by mistry) was shown About 25% of bus, 19% of HCV and 12% of taxi owners reimbursed the expenses only when the driver showed a permanent bill which can be a proof of servicing at either company ASS or large garages

About 10% - 20% commercial vehicle owners admit purchasing duplicate/refurbished component in such an emergency situation Base: 661 commercial vehicle owners In case of buses, about 60% owners claim to have purchased genuine components About 21% had purchased genuine if components were critical else local In case of HCVs, about 57% owners claim to have purchased genuine components About 19% purchased duplicate components and about 16% purchased genuine only if it was critical In case of taxis, about 52% owners claim to have purchased genuine components About 15% of the owners purchased duplicate and about 14% were not sure about the type of component fitted

Maximum percentage of commercial vehicle owners have full faith on their drivers and do not check to ensure whether the component fitted is original Base: 661 commercial vehicle owners In case of buses, about 23% of the owners have full faith on their drivers However a larger number i.e. about 29% physically check the components also equal number of owners ask their drivers to collect the packaging In case of HCVs, about 38% of the owners have full faith on their drivers Also about 22% of the owners ask their drivers to collect the packaging of the component In case of taxis, about 31% of the owners have full faith on the drivers but another 26% physically check and also call the retailer

Profile of the respondents 3. Auto component channel members
Profile of the respondents Auto component channel members - Distributor - Wholesaler/Retailer - Authorized service station - Other service station - Roadside mechanics

Over 866 auto component channel members were met across locations
Base: 866 channel members Distribution of sample by line of business Distribution of sample by city type Around 40% of the total sample covered were roadside mechanics Close to 11% were distributors and about 22% were retailers/wholesalers Over 9% of the sample constituted of authorized service stations and around 18% owned other service stations/garages Close to 3/4th of the sample covered were located in metro and non-metro locations

Further classification of channel members covered during the survey
Base: 866 channel members Distributor Wholesaler/ Retailer Authorized stations Other stations Mechanics All figures in INR lakhs Distribution of sample by annual sales from auto components Distribution of sample by number of employees per outlet Close to 50% of the auto component distributors covered claimed to have an annual sales turnover of more than Rs. 10 lakhs from auto components However, only 17% of wholesalers/dealers had sales of more than Rs. 10 lakhs A high percentage of the distributors, authorized and other service stations employ more than 5 employees per outlet However, in case of mechanics and wholesalers/retailers majority of the respondents employ less than 3 employees

“….since we also need customers to come back to us we provide them with counterfeits…” Large Distributor High percentage of channel members confess stocking and selling counterfeit components: Distributors: 14% Wholesaler/Retailer: 31% Authorized service station: 10% Other service stations: 55% Roadside mechanics: 43% Key counterfeiting hubs identified in India – By City: Chennai Mount Road G P Road (General Ports Road) Pudupet Loot Road MANNADI

“…greediness of dealers, retailers and mechanics force us to supply counterfeits to them…” Distributor Key counterfeiting hubs identified in India – By City: Delhi Kashmere Gate Karol Bagh Darya Ganj Jheel Mayapuri Mori Gate market Mumbai Ulhas nagar Bhivandi Sion Vashi Kolkata Mallick bazar

“…authorized dealers also purchase components from us for use in service stations…” Retailer
Key counterfeiting hubs identified in India – By City: Kolkata Central avenue Richi road Bhawani pur Other cities Nana peth (Pune) Pimpri Chinchwad (Pune) Nigadi (Pune) Lal Bagh (Lucknow) Cant Road (Lucknow) Alambagh (Lucknow) Miller Ganj (Ludhiana) Samrala Chowk (Ludhiana) Kaloor (Kochi) Edapally (Kochi)

“…majority of the counterfeit components are supplied by authorized dealers of OEMs…” Mechanic
Key counterfeiting hubs identified in India – By City: Other cities Sector 38, 43, 48 and 22 (Chandigarh) Kashi Vishwanath Market (Jamnagar) Rajkot and surrounding areas Municipal chowk (Chapra) Gunj and super market (Gulbarga) Vidhu Nagar (Guni)

Brand of components being stocked and sold by channel members covered

Fair percentage of distributors & retailers stock counterfeits for various component types
Base: 283 channel members Drive Trsn Engine Electrical Suspension Equipments Drive Trsn Engine Electrical Suspension Equipments Distributor Wholesaler/Retailer Counterfeits of drive transmission, suspension and equipments seem to be popular among distributors and wholesalers/retailers Although few channel members confess to stocking counterfeits of engine parts also but they are lesser in number

Surprisingly, authorized stations also confess of stocking local and counterfeit components
Base: 226 channel members Drive Trsn Engine Electrical Suspension Equipments Drive Trsn Engine Electrical Suspension Equipments Authorized stations Other service stations Almost all authorized service stations stock OEM approved genuine components. But, few authorized stations covered in the study stocked local and counterfeit components also More than 1/3rd of other service stations confess to stock counterfeit components Local/unbranded components are also stocked by 50% of other stations covered

As expected, almost 50% of the roadside mechanics covered stocked counterfeit components
Base: 357 mechanics Drive Trsn Engine Electrical Suspension Equipments Roadside mechanics Counterfeits of drive transmission components are stocked by majority of the roadside mechanics covered Suspension and equipments are the next most counterfeited components Local components are also being stocked by close to 50% of the mechanics met Majority of the respondents claim to stock OEM and Non-OEM genuine components

Attitude towards auto component replacement - Private vehicle owners - Commercial vehicle owners

For majority of two-wheeler owners, desired source of purchase for various components is not company ASS but other service options Base: 1141 two-wheeler owners In case of engine components, maximum number of two-wheeler users i.e. 47% would like to purchase from company ASS Rest 53% of the users still prefer to purchase components from other service options In case of drive transmission, the percentage of users who would purchase from company ASS drops to just 37% Although drive transmission problems were faced by the maximum number of users, still they would not go to company ASS for repair/purchase For all other categories of components the percentage of users going to company ASS for purchase keeps on decreasing

On the contrary, four-wheeler owners would prefer purchasing all types of components from company ASS…share of small garages also goes down Base: 1550 four—wheeler owners In case of engine components, maximum number of two-wheeler users i.e. 62% would like to purchase from company ASS This shows the importance given to such components by the users In case of drive transmission, the percentage of users who would purchase from company ASS drops to 54% Around 12% would prefer going to small garages and about 22% to large garages For all other categories of components the percentage of users going to company ASS is hovering around 51%

Attitude towards auto component replacement - Private vehicle owners - Commercial vehicle owners

Choice of auto components purchase source among commercial vehicle owners is highly fragmented
Base:1089 commercial owners In case of engine components, maximum number of owners i.e. 25% would like to purchase from company ASS Around 23% prefer small garages and road side mechanics In case of other type of components, the percentage of owners who would purchase from company ASS drops to just 17% - 18% Maximum percentage of owners would like to purchase such components from road side mechanics The next best option for the owners are small garages

Discounts offered and promptness of service offered by other service stations are key factors preventing the use of company authorized stations Base:1089 commercial owners Top Box score Over 43% of the commercial vehicle owners have given maximum weight age to discounts offered by other service stations as a key determining factor in choice of such stations over company authorized service station Another 42% of the respondents have given high importance to promptness of service (of other service stations) and high cost of services in company authorized service station as next 2 important factors Over 36% of the respondents perceive genuine components to be costly It seems existing relationships with other service stations has an important role to play in the final choice of service destination also

Attitude towards counterfeit components

Methodology used for mapping attitude towards counterfeit components
Battery of statements were exposed to the respondent and level of agreement was sought The following scale was used to capture the level of agreement by the respondent Level of agreement Code I strongly agree with this statement 1 I somewhat agree with this statement 2 I neither agree nor disagree with this statement 3 I somewhat disagree with this statement 4 I completely disagree with this statement 5

Around 11% of private owners and 19% of commercial owners confess to purchase of counterfeit components intentionally Base: 2314 private owners 1089 commercial owners Private owner Commercial owner Many times I intentionally buy counterfeits I am aware about damages caused by counterfeits to my vehicle I feel cheated when counterfeits are pushed when I have paid for original Many times counterfeits are sold as originals Quite frequently original spare parts are not available Surprisingly, majority of the private and commercial vehicle owners seem to be aware about the damages caused by counterfeit components to their vehicle Also, more than 50% of the respondents feel that quite frequently original spare parts are not available which forces the channel members to push counterfeits

Majority of the private and commercial owners strongly agree that use of counterfeits increases frequency of repair Base: 2314 private owners 1089 commercial owners Private owner Commercial owner Use of counterfeits reduces the vehicle life Use of counterfeits causes frequent break-down of the vehicle Use of counterfeits worsen the overall driving experience Use of counterfeits increases frequency of repair Majority of the private and commercial vehicle owners seem to be aware about the fact that use of counterfeits reduces the useful life of the vehicle and causes frequent breakdowns Also, most of the vehicle owners agree that use of counterfeits has a negative impact on the overall driving experience

Close to 80% of both private and commercial vehicle owners felt the need of increase in number of company authorized service stations Base: 2314 private owners 1089 commercial owners Private owner Commercial owner Repair in authorized service stations should be made cheaper Number of company authorized service stations should be increased Counterfeit manufacturers should be dealt with strictly Re-furbishing of inferior auto components should not be allowed More than 75% of both private and commercial vehicle owners felt that the repair in company authorized service stations should be made cheaper so as to attract more and more vehicle owners Also, a high percentage of vehicle owners felt re-furbishing of auto components should be banned as they are inferior in quality

Cheap price and easy availability are the key reasons for purchase of counterfeit components
Base: 2314 private owners 1089 commercial owners About 81% of private owners and around 87% of commercial vehicle owners feel that cheap price of such components motivates people to purchase them About 50% of all vehicle owners also feel the easy availability of such components in the market is also a key reason Other reasons cited are discounts, word of mouth and past experiences

Some Suggestions to curb the growing menace

Public-private partnership for education of customers against evils of using such components is imperative… Jaago Grahak Jaago This famous tag-line being used by consumer protection cell can also be replicated in the case of counterfeit components As large percentage of customers are buying such illicit duplicates under the impression of being genuine And as we all know, the kind of danger the consumer and his loved ones are exposed to on using such duplicate components Spreading education and awareness among the customers is most important and this effort has to be jointly supported by public and private stakeholders Education of channel members and law enforcement agencies In addition to the education of the customers, the channel members and law enforcement agencies need to be educated This would help in identification and removal of counterfeits from the supply side

OEM backed service stations/mobile vans need to provided on National Highways
According to experts a high percentage of counterfeit components for commercial vehicles are being pushed on National Highways It is estimated that truck-owners in India spend Rs.220 bn annually on maintenance of trucks (Source: The Elgi Magazine) Despite such huge expenditure, the truck owners had access only to spurious low quality spares and maintenance by untrained mechanics The drivers purchase spurious components and claim bills for original components. Though the fleet owner are aware of such malpractices but they do not have any other option In our primary survey also, majority of truck owners have recommended expansion of network by the vehicle manufacturers In developed countries, there are special services targeted at commercial vehicles commuting on the highways Such services offer monthly preventive maintenance and emergency vehicle repairs which are just a phone-call away Infrastructure provided includes workshops on highways in addition to mobile vans

Sharing of market intelligence among the various vehicle manufacturers through associations will definitely help in curbing this menace As different vehicle manufacturers, are operating from different geographies the market intelligence is bound to differ Sharing of market intelligence will help in reduction of counterfeits in the market fulfilment resulting in better future Rationalization of taxes and duty structure Price difference between an original and counterfeit component can range between 50% - 150% for high end vehicles Reduction in the taxes might act as a de-motivator for counterfeit manufacturers Organized retail chains One-stop shop for various types of genuine components especially in Northern region where counterfeiting is being done at a very large scale Non-metros and small towns to be given equal importance if not more in terms of education

Summarizing…

Key take-out Improve awareness of counterfeiting and damages caused among private and commercial vehicle owners Current awareness levels are rather moderate at around 40% awareness only. The message needs to be reinforced continuously by way of an extensive PR activity Suggested game plan Promote use of original equipment and authorized service centres through advertisements in suitable media (auto magazines, general magazines, newspapers, etc.) and articles. Suggestion 1 Get new car owners hooked to authorized service stations by hoardings and materials in the service station, TV messages in waiting rooms, pamphlets, etc. Suggestion 2 Target not only owners but also car drivers and auto-mechanics on the benefits of genuine components and how it is more beneficial in the long-run to use genuine components Suggestion 3 Messaging clearly needs to highlight the financial benefits (low breakdown rate leading to lower maintenance cost) and conevnience aspect (lesser number of trips to service station, avoid embarassment on the road) Suggestion 4

Suggested action plan Awareness Interest Desire Action
Through advertisements in T.V., radio, Internet and industry magazines Through detailed articles and customer experience studies on websites, newspapers, T.V. auto shows, etc on the benefits of genuine components By offering value for money warranty offerings, reaching out to even for second hand and old vehicles by way of loyalty programs By improving the distribution infrastructure of auto components, network of authorized service stations, allow buying `only components’ from service stations

Thank you!

Annexure

Share of counterfeit components by vehicle category - Private vehicles - Commercial vehicles

In case of scooters, just about 10% of the total expenditure on components is in authorized service station

But it goes up to 15% in case of motorcycles…

About 1/3rd of total expenditure on components in case of Segment A cars is in authorized service stations

As expected share of authorized service stations increases to almost 50% in case of Segment B & C cars

Expenditure on components in company authorized service station is the highest in case of Segment D cars

Summarizing the figures of component expenditure in authorised station for private vehicles
In case of cars, the expenditure on components of Segment D cars in company authorized service station is the highest at 65% and lowest being in the case of Segment A cars at 28% It seems that as we move up from one segment to other in case of cars, the share of company authorized service stations increases significantly In case of scooters the share is 11% and close to 15% for motorcycles

Share of counterfeit components by vehicle category - Private vehicles - Commercial vehicles

For all commercial vehicles, expenditure on components in authorized service stations is very low at 15% Commercial vehicles Rs cr Rs cr Rs cr Rs cr Rs cr In case of four-wheeler taxies, the expenditure on components in company authorized service station is highest at 22% On the hindsight in case of LCVs it is the lowest at 10% For HCVs and buses the share of authorized stations is 15%

Entry of counterfeit components in the auto component after-market in India

Structure of auto component replacement market in India
OE sales Auto Component Manufacturers In the recent past, the sales to OEMs for aftermarket has been increasing. The OEMs now prefer to interact with their customers directly rather than through their vendors Authorised Distributors Institutional sales Company ASS Wholesalers Retailer Mechanic Customers

How do counterfeit components enter the market?
Auto Component Manufacturers Different respondents have different view points. However, one thing which was common was that majority of such components enter the market through the channel: Authorised Distributors Some also believe that wholesalers push it Wholesalers Majority believe that it enters at the retailer level Retailer Few say mechanics are also involved Mechanic Customer

Vicious cycle forcing channel members to push counterfeits
Want to deal with the customers directly Contracts with auto-component manufacturers for supply of components at decreasing prices in future Bear the brunt of reducing margins Temptation to earn higher margins No incentives for being a faithful member Forced to maximize profits from replacement market Aggressive pricing policy Do not consider economic feasibility of channel at times In recent past have squeezed margins of channel in order to become more competitive

Source of Counterfeits
Counterfeit manufacturers are exclusively into the business of manufacturing such components Source of Counterfeits Domestic counterfeit manufacturers Have tie-ups with retailers and wholesalers Source second hand cheap machinery Have manufacturing at one place and printing at another Gather both at one place and pack them as original Fast moving components are being copied Dies are counterfeited by reverse engineering Capacity to duplicate any component within 3-4 days after change in packaging Imports Mainly from China and other Asian countries Illegally enter the country Most of the time components come unbranded and unpacked Quality comparatively better Key hubs in India: Punjab (Ludhiana, Jalandhar) Delhi and Tamil Nadu

Counterfeit components have a negative impact on the brand image and trust placed by the customers on OEMs and their partners Customers are under the impression that they are purchasing genuine components but in actual counterfeit components have been pushed: Such components underperforms with respect to the expectations resulting in negative brand association and ultimately negative word of mouth It also has a negative impact on the sales of the organized sector player In addition to the domestic market users, the export market is also affected by counterfeit components Major auto component manufacturers have conducted raids and caught export consignments containing counterfeit components under their brand name to key hubs across the world especially Dubai Mico Bosch caught an export consignment worth Rs.50 crores containing fast moving counterfeit components under their brand name Though most of the stakeholders have taken some kind of initiatives in this regard

Key initiatives taken to curb the menace of counterfeit components by various stakeholders
Investing resources to have a separate brand protection cell within the organization Use of inventive holograms in packaging Educating the customers, channel about the change in packaging through exhibitions/ campaigns/ mobile vans/ melas etc Hiring specialized agencies to conduct raids on counterfeit manufacturers and sellers Getting closer to the customer by supplying components to the after market directly rather than through the vendors Opening company owned showrooms in key urban areas in order to provide genuine components to the customers Regular stock audits carried out on the channel members in order to instil a sense of discipline Dealing with large institutional buyers directly and not through channel

Some quotes to be shared…
“….CF manufacturers copy anything which sells…..” large auto component manufacturer “….channel members also want to eat chicken and drink alcohol, but at the current margins they are not able to do that…..thus they sell CF components….” - large auto component manufacturer “…social ethics need to created against the purchase of CF….as all the customers purchase such components on the assumption that they are purchasing genuine components….” - large OEM & Association “…change in packaging is a viscous cycles, it results in more confusion in the market among the channel and customers….also within 3-4 day period it is again copied…” “…there could be some counterfeit components being passed through company ASS in remote locations when supply is irregular….” - large OEM “…government should place adequate checks in order to ensure supply of genuine components in case of large institutional purchases…”

Detailed profile of the respondents met

1288 two-wheelers and 1659 four-wheelers of all types were owned by private vehicle owners covered… their ownership by town class Base: 1288 two-wheelers 1659 four-wheelers Private vehicle owners in metros owned over 47% of the total two-wheelers encountered during the study followed by non-metros at 35% Similarly in the case of four-wheeler, ownership of the private vehicle owners in metros contributed to over 50% of the total followed by non-metros at 34%

Maximum percentage of vehicles owned were purchased in the 3 year period from 2000-02
Base: 1288 two-wheelers 1659 four-wheelers Over 38% of all two-wheelers owned were manufactured in that period as compared to 55% of the four-wheelers In case of two-wheelers over 18% of the vehicles were purchased after 2002 as compared to just 5% in four-wheelers

More than 2/3rd of all the vehicles encountered were first hand purchases…with non-metro cities having the highest percentage of first hand ownership Base: 1288 two-wheelers 1659 four-wheelers Two-wheelers Four-wheelers In case of two-wheelers over 83% of the vehicles are first hand purchases The percentage of first hand vehicles is highest in the non-metros at 88%. Purchasing power of people in most of these non-metro cities have increased significantly in the recent past As expected the percentage of first hand vehicles in the case of Small towns is comparatively lesser In case of four-wheelers over 75% of the vehicles are first hand purchases Again the highest number of first hand purchases are in non-metros and the lowest in Small towns

Around 68% of two-wheelers and 72% of four-wheelers were first time purchases
Base: 1288 two-wheelers 1659 four-wheelers Two-wheelers Four-wheelers In case of two-wheelers over 70% of vehicles purchased in metro cities are first time purchases for a household However, in case of non-metro cities only 64% of the two-wheelers purchased are first time purchases As expected the percentage of first time purchases in the case of Small towns is highest at 75% In case of four-wheelers over 70% of the vehicles purchased in metro cities are first time purchases However, in case of non-metro cities over 77% of the four-wheelers purchased are first time purchases probably proving the increase in expenditure by the people in such locations As expected the percentage of first time purchases in the case of Small towns is highest at 93%

On an average 4-wheelers cover a distance of 39 kms/day in a weekday as compared to 31 kms/day for 2-wheelers…highest being in other NM cities Base: 1288 two-wheelers 1659 four-wheelers In case of two wheelers average distance covered per weekday (working days): Is highest in the case of Other NM cities at 34 kms/day Is lowest in the case of Small towns at 21kms/day In case of four-wheelers average distance covered per weekday: Is highest in the case of other NM at 47 kms/day Is lowest in the case of Small towns at 22 kms/day

Similarly, other NM vehicle owners cover maximum distance per day on weekends……
Base: 1288 two-wheelers 1659 four-wheelers In case of two wheelers average distance covered per day on weekends (Holidays) is 22kms/day This is much lower than the average distance covered per weekday which stood at 31kms/day Probably people choose to rest or travel with entire family on the weekend for which two-wheeler might not be the suitable vehicle always In case of four-wheelers average distance covered per day on weekends is 42kms/day This figure is slightly higher than the average distance covered per weekday which is 39kms/day Probably four-wheelers are used for family travel/visits on the weekends

Regular Service Details for Two-wheelers - Scooters - Motorcycles

Paid routine service was the primary nature of last regular service among all two-wheeler owners
Base: 1058 two-wheelers In case of metros over 65% of the users took their vehicle for paid routine service as compared to 74% in non-metros Also in metros 32% of the users took their vehicle for regular service because of malfunction as compared to 25% in the case of non-metros In case of other NM over 69% of the users took their vehicle for paid routine service as compared to 92% in small cities Also in case of other NM more than 30% took their vehicle for regular service as a result of malfunction compared to just 8% in case of small cities

Frequency of regular service ranges from 4
Frequency of regular service ranges from 4.5 – 5 months in all locations except small cities where it increases to once in every 4 months Base: 1058 two-wheelers 4.96 mths 4.58 mths 5.32 mths 3.98 mths In case of metro cities, over48% of the users have reported 4-6 months as frequency of regular service as compared to 58% in the case of non-metros More than 1/3rd of the vehicle owners in both metros and non-metros have reported 1-3 months as frequency In case of Other NM cities, over48% of the users have reported 4-6 months as frequency of regular service as compared to just 45% in the case of small Over 35% of the vehicle owners in other NM and 51% in small have reported 1-3 months as frequency of regular service

When it comes to regular service in case of scooters, higher percentage of vehicles are been taken to company ASS in comparison to normal service Base: 327 scooters In case of metros over 13% of the users took their vehicle for regular service to company ASS compared to 17% in the case of non-metros However, small garages and road-side mechanics are still the favorite service destinations among the users In case of other NM over 13% of the users took their vehicle for regular service to company ASS as compared to just 5% in case of small cities Small garages are preferred by 85% of the users in small cities as compared to 38% in case of other NM

In case of motorcycles almost 1/3rd of the vehicles are being taken to company ASS for regular service in case of metros and non-metros Base: 315 motorcycles In case of metros and non-metros over 27% of the users took their vehicle for regular service to company ASS Percentage of vehicles being serviced at small garages and road side mechanics are slightly lesser as compared to scooters In case of other NM over 32% of the users took their vehicle for regular service to company ASS as compared to just 9% in case of small cities Small garages are preferred by 78% of the users in small cities as compared to 30% in case of other NM

Two-wheelers owners who regularly purchase components from non-company authorized service stations claim to spend 70% on genuine components Base: 650 two-wheelers In case of metros and non-metros on an average users spend 70% on purchase of genuine components Approximately 2%- 4% of the expenditure is on duplicate components Rest is on local or other brands of components In case of other NM and small cities the trend is almost similar Approximately 20% of the expenditure is on other or local brands of components

Average expenditure on components has been the highest in case of metro cities…although in motorcycles the difference is not very high Base: 1058 two-wheelers In Rs. In case of metros, the average expenditure on components by scooter users was Rs.334 and in case of motorcycle users it was Rs.351 In case of non-metros, the average expenditure on components by scooter users was Rs.234 and in case of motorcycle users it was Rs.341 In case of other NM, the average expenditure on components by scooter users was Rs.232 and in case of motorcycle users it was Rs.324 In small cities, average expenditure by scooter users was Rs. 120 and Rs. 151 by motorcycle users

In case of regular service also, company ASS are almost 50% more costlier than other service options for scooter users Base: 327 scooters In Rs. Users who took their vehicle to company ASS for last regular service spent on an average Rs.383 on purchasing components as compared to: Rs.285 in case of large garages Rs.274 in case of small garages Rs.205 in case of road side mechanics Expenditure on labor and consumables is also highest in case of company ASS This again might be a big deterrent for price-sensitive users who take their vehicle for regular servicing

Regular service of motorcycles in company ASS is not as costly compared to other service stations
Base: 315 motorcycles In Rs. Users who took their vehicle to company ASS for last regular service spent on an average Rs.396 on purchasing components as compared to: Rs.255 in case of large garages Rs.335 in case of small garages Rs.246 in case of road side mechanics Expenditure on labor and consumables is highest in case of company ASS It seems that the motorcycle manufacturers are not charging a very high premium for normal or regular service

A fair percentage of the users have purchased few genuine and few local components…although majority still claim to have purchased genuine components Base: 1058 two-wheelers In case of metros over 65% of the users claim to purchase genuine components in last service as compared to 43% in case of non-metros And in case of non-metros over 7% of the users purchased duplicate components compared to 8% in the case of metros In case of other NM and small cities, around 60% of the users claim to purchase genuine components Also in case of small cities more than 11% of the users purchased duplicate components compared to 9% in the case of other NM

Regular Service Details for Four-wheelers

Paid routine service was the primary nature of last regular service among four-wheelers owners across locations Base: 1519 four--wheelers In case of metros over 69% of the users took their vehicle for paid routine service as compared to 73% in non-metros Also in metros 20% of the users took their vehicle for regular service because of malfunction as compared to 18% in the case of non-metros In case of other NM over 54% of the users took their vehicle for paid routine service as compared to 93% in small cities Also in case of other NM more than 29% took their vehicle for regular service as a result of malfunction compared to just 4% in case of small cities

When it comes to regular service, percentage of vehicles being serviced at company ASS increases substantially….specially in case of small towns Base: 1519 four--wheelers In case of metro cities, almost 50% of the vehicles were serviced at company ASS as compared to 52% in the case of non-metros Around 30% of metro vehicles were serviced at large garages compared to 20% in non-metros where an equal number were serviced at small garages also In case of other NM cities, around 71% of the vehicles were serviced at company ASS compared to 56% in small towns Also in case of other NM cities, over 16% vehicles were serviced at small garages But in case of small towns, more than 32% of the vehicles were serviced at large garages

Respondents who regularly purchase components from non-company authorised service stations claim to spend maximum on purchase of genuine components Base: 1060 four--wheelers In case of metros on an average users spend 81% on purchase of genuine components compared to 72% in the case of non-metros Approximately 2%- 4% of the expenditure is on duplicate components Rest is on local or other brands of components In case of other NM and small towns almost majority of the users claim to purchase genuine components only

Average expenditure on components in case of regular service is lower as compared to normal service
Base: 1060 four--wheelers In Rs. As normal service included comparatively higher percentage of accidental cases Also the base of respondents in case of regular service is higher which might have averaged out the exceptional cases encountered The average expenditure on components in the last regular service ranges from Rs.1197 in the case of Segment A cars to Rs.3116 in the case of Segment E cars

Gap between expenditure on components in Company ASS Vs other service stations reduces in case of regular service Base: 1519 four--wheelers In Rs. Users who took their vehicle to company ASS for last regular service spent on an average Rs.1695 on purchasing components as compared to: Rs.1256 in case of large garages Rs.1310 in case of small garages Rs.981 in case of road side mechanics Expenditure on labor and consumables in company ASS is also comparable with other service options

Study to Size the Counterfeit Market for Auto Components in India

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Study to Size the Counterfeit Market for Auto Components in India

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