Indian Automotive Aftermarket Projected to Reach US$ 14B by 2028, with Global Export Possibility of Over US$ 35B: ACMA-EY Study

New Delhi, India – Ahead of the 5th ACMA Automechanika New Delhi, at the Bharat Mobility Global Expo 2024, ACMA, the apex body of the Indian auto component industry, shared insights from its Global Automotive Aftermarket Research Report, conducted in partnership with leading advisory firm Ernst & Young (EY). According to the study, that focuses on seven product categories, namely engine parts, suspension & braking parts, transmission parts, braking parts, rubber components, cooling systems, and filters, the size of the Indian automotive aftermarket was US$ 10 billion in 2023 and is expected to grow by close to 1.4 times to an estimated US$ 14 billion by 2028. Tyres and consumables such as batteries, coolants, and lubricants are, however, not covered in the study.

The growth of the aftermarket in India is fuelled by a steady increase in the vehicle parc, which currently stands at 340 million and is expected to grow at a CAGR of over 8 percent for the next five years. The Two-Wheelers and Passenger Vehicles parcs are projected to show robust growth from 257 to 365 million units and from around 47 to over 72 million units, respectively, by 2028. Pre-owned car sales are projected to grow around 17.5 percent CAGR until FY 28, fuelled by organized 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 US$ 1 billion to the Indian aftermarket, and 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 and narrows down its focus to 10 major export markets, identifying over US$ 35 billion worth of export opportunities. Five of these markets, namely Indonesia, LATAM, Poland, Brazil, Columbia, and Bangladesh, have matured aftermarkets with a substantial number of aging 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 US$ 35 billion by 2028.

On 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, valued at US$ 10 billion in 2023, is poised to surge almost 1.4 times over the next 5 years on the back of growing vehicle demand and the promising capabilities of the Indian aftermarket players. Likewise, key ten international markets offer export opportunities of over US$ 35 billion. The Indian components suppliers need to focus on building partnerships with international buying groups to gain market access, invest in marketing and branding, increase their digital presence, and build collaboration amongst the industry players to provide their joint offerings to tap global market opportunities.”

Expressing satisfaction with the tremendous response to the exhibition, Vinnie Mehta, Director General, ACMA, commented, “The Indian auto component makers witnessed a promising 7.5 percent growth in the first half of FY24 due to increased demand for pre-owned vehicles, a preferential shift towards larger vehicles, and the increasing formalization of the repair and maintenance market. On the back of fast-growing aftermarket opportunities, we are thrilled with the response for participation from both domestic and international players at the ACMA Automechanika New Delhi 2024. 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.” 

The 5th edition of ACMA Automechanika New Delhi from February 1-3, 2024, in Bharat Mandapam, Pragati Maidan, New Delhi, will witness 500+ exhibitors from more than twelve nations, with dedicated country pavilions from Japan, Germany, Korea, Taiwan, and Thailand, showcasing their aftermarket product innovations, technological advancements, and sustainable mobility solutions. In addition, another close to 100 exhibitors will be participating in two exclusive Auto Components Pavilions, showcasing products and solutions for OEMs.

Image Source: Magic Wand Media

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