Online retailing of automotive spare parts is revolutionising the entire market, according to Ukrainian Oleksandr Danylenko, co-founder, boodmo, India’s largest online marketplace for auto components.
Danylenko feels that fake parts is one of the main challenges before him. “It is commonly known that they are about 20%-30% cheaper than genuine parts, and find easy access to the market. Counterfeit parts not only pose threat to a vehicle’s performance, but more importantly they jeopardize the vehicle’s safety, endangering lives,” he says.
Founded in the year 2015, boodmo is the country’s largest online marketplace for auto components where buyers and sellers use it as an interface. The platform makes it easier for the car owners to find genuine auto car spare parts. boodmo has a huge database of genuine and aftermarket replacement parts offered from suppliers across the nation. boodmo aims to organise Indian replacement parts market and makes shopping process easier and more convenient.
Deanylenko came to India from Ukraine to explore opportunities in the startup space on the realisation that the spare parts auto industry is not well organised in India. Therefore, if the industry is digitised to offer timely products to the customers the auto component marketplace could grow many folds, he thought.
But he says one of the main challenges has been to fight the problems of counterfeit products. Counterfeit parts not only pose threat to a vehicle’s performance, but more importantly they jeopardize the vehicle’s safety, endangering lives. It is commonly known that they are about 20%-30% cheaper than genuine parts, and find easy access to the market.
Unfortunately for auto industry, spare parts were seen as luxury goods and currently levied with 28% GST. So transition to higher taxes with old MRP was painful for distributors.
Another issue is MRP on spare parts products. For example, in distant areas compliant dealers will not sell bulky products at their loss due to high logistics expenses and increased tax. As a consequence drivers will have no choice as to pay over MRP to cover transportation cost.
According to the Ukranian, India is a burgeoning market with growing domestic demand. Also, the country has the demographic dividend advantage which will push the consumer demand continually. Plus, currently, India is one of the fastest growing economies in the world and therefore, at the cusp of global attention because of the huge potential it offers to each entrepreneur from any part of the globe, for growth.