Groupe PSA enters Indian aftermarket industry with Eurorepar

by Sumantra B Barooah 29 Sep 2020


French major Groupe PSA is the latest entrant in the Indian aftermarket industry with the launch of its Eurorepar range of multi-brand, high-quality aftermarket products in India. The Eurorepar business is present in over 100 countries, but India is the first market where its entry precedes the launch of Groupe PSA’s first vehicle in India.

The company will enter the passenger vehicle market during the first quarter of 2021, with the Citroen C5 Aircross SUV. PCA India, the local entity of Groupe PSA, signed a sales and distribution agreement with GoMechanic, a growing player in the Indian aftermarket with a network of flagship and partner workshops, spare part retailers and an e-commerce technology platform. It has a direct and indirect network of around 5,000 touchpoints. GoMechanic will support the sales of Eurorepar spare parts in India. With this launch, Groupe PSA also becomes the first OEM to launch its aftermarket business in India, before making a market entry with its vehicles.

The first set of Eurorepar products in India include wipers and brake pads. Going forward Groupe PSA plans to offer a “huge range” of products. The company is targeting vehicles of all makes, which are three years old or more. Citing India as a “key market” for the aftermarket business, Jean Christophe Bertrand, Senior VP, Groupe PSA - Independent Aftermarket Business Unit, tells Autocar Professional, “We want to launch Eurorepar because we understand there is a lot to do in this Indian aftermarket. Of course we understand that our multi-brand parts range will be a good asset to roll out our activity (in India).”

India to be among Eurorepar’s key markets globally by 2025
Eurorepar contributes to around 10 percent of Groupe PSA’s annual turnover. Under the company’s ‘Push to Pass’ business turnaround and growth plan, the target for the aftermarket business is to contribute a fourth of the company’s total turnover.

Roland Bouchara - Senior Vice President, Sales and Marketing India - Groupe PSA, explains why the company is bullish of prospects in the Indian aftermarket. “If I have to compare the Indian aftermarket industry to some other markets like Europe, the big difference is that there are not many specialised aftersales channels. The space is not very well developed in India yet.” There’s good scope for organised aftermarket players in India, as the space gets gradually organised. The aftermarket was also the only business segment which witness growth, though below expectations, during 2019-20. The French car major expects India to be among Eurorepar’s key markets globally in 5 years or so.

As per the agreement with GoMechanic, PCA India will provide the Eurorepar parts to GoMechanic, who will then distribute the parts through its warehouses and parts distribution logistics platform to all the workshops and retailers within its network. Groupe PSA will provide support in terms of marketing, training, brand building, besides providing a very strong product range.

Speaking on the partnership, Amit Bhasin , Cofounder, GoMechanic, says, “This partnership bodes well for us as we strive to provide superior quality service and parts at an affordable price to our customers. This could not have come at a better time as we are rapidly expanding our service centres in the country. With our 350+ workshops and a robust spare parts distribution network, we are confident that we can help scale Groupe PSA’s aftermarket business in no time.”

Eurorepar’s product range will be expanded progressively to include multiple product lines like filters (air, oil and fuel), brake discs, coolant, grease & lubricants. The parts will be available in India, through GoMechanic workshops and retailers in 15 major cities from 29th September 2020.