Bosch expects to see growth of 20% cent this year in its automotive after-sales business in India, despite cheap Chinese imitations affecting its revenue by almost one-third.
“In 2008, we had a turnover of Rs 10bn (US$205m) from our automotive aftermarket business. So far this year, we have grown about 23% and we are confident of attaining 20% jump in this year,” Bosch aftermarket chief K Ravi told reporters in New Delhi.
He said the expected growth would come despite illegal shipments of huge quantities of parts made in China, which are sold in India under the Bosch brand.
“The Indian after-sales market is estimated at Rs 150bn and 40-50% are fake products. Our business has been affected to the extent of 33% due to this,” Ravi said.
On Monday, the company destroyed 134,000 spark plugs, worth INR6m following permission from the Delhi High Court. The products had been imported from Hong Kong under Bosch’s label two years ago.
“We have been undertaking joint action in cooperation with police forces of various states to crack down on sale of spurious imported items. Last year, we helped in conducting 701 raids at various establishment leading to 669 arrests. This year we have already conducted 633 raids and arrested a similar number of people,” Ravi said.