The
industry research report, “Automotive
Aftermarket in India” provides the top-line qualitative and
quantitative summary information which well includes the comprehensive market
size (value and volume 2013-17, and forecast to 2022) and segmentation data,
textual and graphical analysis of market growth trends as well as significant
macroeconomic information. It also entails the descriptions of the leading
players along with the related key financial metrics and analysis of
competitive pressures within the market. It proves to be an essential resource
for top-line data and analysis covering the India automotive aftermarket
market.
The automotive aftermarket refers to the secondary market
of automotive
industry which mainly involves manufacturing,
remanufacturing, distribution, retailing and installation of all types of vehicle parts, chemicals, equipment,
and accessories, after the
sale of automobiles by its original equipment manufacturer to the consumers.
The
leading aftermarket Indian player has long been witnessed as “Delphi” which is lately
engaged in emboldening its parts coverage in local aftermarket with a wider
reach and penetration. In future, it is planning to invest to be long-term
player as well as continue strengthening its portfolio in order to rapidly
develop in the industry since a tremendous potential for growth has been
observed.
This sector has well
handled many changes as well as overcame challenges over the years and a
complete transformation has taken place as a result; be it: the entry of the
world’s best passenger car makers, the transition from a duopolistic to a
fiercely competitive market, mushrooming growth in the two-wheeler space,
qualitative changes in terms of better performance, ameliorated fuel
efficiency, enhanced safety and comfort, adoption of technology, focus on
connectivity, etc. Through all these affirmative changes, the aftermarket has maintained
to grow in its own way supported by a good number of companies coming up with appropriate
solutions in the form of compatible products, wider network reach, digital
solutions and many other leading initiatives and innovations.
It has been observed that the
Indian automotive aftermarket sector generated total revenues of somewhere
around USD 20.1 billion in 2017, thereby representing a decent compound annual
growth rate of about 16.2% between 2013 and 2017 wherein the components segment
of the sector was seen as the most lucrative, accounting for nearly 92.3% of
the sector's overall value. Furthermore, the industry is expected to persistently
experience a strong growth in the coming years, due to its ameliorating culture
of repairing and modifying old vehicles and high vehicle age.
Over the years, the domestic
aftermarket has witnessed a robust expansion from commercial vehicles to
passenger cars and the usage pattern has also changed remarkably, resulting in
an impeccable increase in the service requirements. The market has been
critical in bolstering demands since the sector has been the largest employer
in the country that is bound to produce newer employment opportunities in the
future.
For
a sustainable growth in the long term, the industry has realized the need to establish
efficient transport operators, service mechanics and retailers for improving
their profitability. These upcoming factors will not only ensure survival but it
will also aid in resurging the sector. Therefore, in the coming years, vehicle
manufacturers are anticipated to explore entry into the business of multi-brand
services through organized multi-brand outlets and authorized dealers who can
invest in expensive garage equipment. Recently, ‘Mahindra First Choice’ has
been one such company that has done this successfully.
Moreover,
online e-retailing has been noticed as the new global trend, which is further
projected to emerge in India and enable the Indian consumers to compare market
prices and shop online relishing the convenience offered. Thus, the online auto
aftermarket in India is expected to rise at a CAGR of 7 percent to about USD 150
million by 2020. Even, the launch of Goods and Services Tax will impact the stakeholders
in this automotive value chain and is thereby forecasted to help them enjoy the
benefits of improved operating economics. An
increased car parc is also forecasted in the coming future which will drive
demand for parts of the aftermarket and ultimately the industry is anticipated
to register a decent 13.4 percent until 2021.
India has been crowned to become the third largest auto
components market in the world by 2025, wherein the auto component makers have
been goodly positioned to benefit from globalization of this sector that will open
up opportunities in the aftermarket for any manufacturer, not only in India but
also, globally. (Offering quality products at competitive costs)
To know more about the research report:
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Ken Research
Ankur Gupta,
Head Marketing & Communications
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