New Delhi, January 29th, 2024. ACMA shared insights from its Global Automotive Aftermarket Research Report, conducted in partnership with Ernst & Young. The study focuses on seven product categories: engine parts, suspension & braking parts, transmission parts, braking parts, rubber components, cooling systems, and filters. According to the study, the size of the Indian automotive aftermarket was USD 10 Billion in 2023. It is expected to grow by close to 1.4 times to an estimated USD 14 Billion by 2028. Tyres and consumables such as batteries, coolants, lubricants are however not covered in the study.
The growth of the aftermarket in India is fueled by a steady increase in the vehicle parc, which currently stands at 340 million. It is expected to grow at a CAGR of over 8% for the next five years. The Two-Wheelers parc is projected to show robust growth from 257 to 365 million units by 2028. The Passenger Vehicles parc is expected to increase from around 47 to over 72 million units during the same period. The pre-owned cars sales are projected to grow around 17.5% CAGR until FY 28, fuelled by organised businesses and online platforms. The commercial vehicle parc is expected to grow from 13 million units to 19 million units in 2028. The tractor segment currently contributes close to USD 1 billion to the Indian aftermarket. The parc is expected to grow from 14 million units to over 19 million units during the 2023-28 period.
On the international front, the study covers 39 countries. It narrows down its focus to 10 major export markets, identifying over USD 35 billion worth of export opportunities. Five of these markets namely Indonesia, LATAM, Poland, Brazil, Columbia and Bangladesh have matured aftermarket with a substantial number of ageing vehicles while another five markets, i.e., North Africa, South Africa, East Africa, West Africa and UAE are fast developing and offer high growth opportunities. The combined export potential to these ten markets is expected to grow to over USD 35 billion by 2028.
Speaking about the market potential for the Indian aftermarket industry, Shradha Suri Marwah, President ACMA, Chairperson and Managing Director, Subros Ltd, said, “The insights from the Global
Automotive Aftermarket Research highlight unique opportunities for the Indian auto component aftermarket players. The Indian domestic aftermarket was valued at USD 10 billion in 2023. It is poised to surge almost 1.4 times over the next 5 years. This growth is driven by the increasing demand for vehicles and the promising capabilities of Indian aftermarket players. Likewise, key ten international markets offer export opportunities of over USD 35 billion. The Indian components suppliers should focus on building partnerships with international buying groups to gain market access. They should invest in marketing and branding, and increase their digital presence. Additionally, building collaboration amongst industry players will enable them to provide joint offerings and tap into global market opportunities.”
Expressing satisfaction on the tremendous response to the exhibition, Vinnie Mehta, Director General of ACMA, said, “The Indian auto component makers witnessed a promising 7.5% growth in the first half of FY24 due to increased demand for pre-owned vehicles, preferential shift towards larger vehicles and the increasing formalization of the repair and maintenance market. Thrilled with the response for participation at the ACMA Automechanika New Delhi 2024, we attribute it to fast-growing aftermarket opportunities. This response comes from both domestic and international players. The event gives auto component manufacturers from across the world a platform to connect and demonstrate capabilities in the aftermarket. The exhibition has been seamlessly integrated into Bharat Mobility Global Expo 2024.”
ACMA Automechanika New Delhi will host its 5th edition from February 01 to 03, 2024, at Bharat Mandapam, Pragati Maidan, New Delhi. The event will feature 500+ exhibitors from more than twelve nations. Dedicated country pavilions from Japan, Germany, Korea, Taiwan, and Thailand will showcase their aftermarket product innovations, technological advancements, and sustainable mobility solutions.
In addition, another close to 100 exhibitors will be participating. They will showcase products and solutions for OEMs in two exclusive Auto Components Pavilions.
