India’s automotive aftermarket is likely to grow to USD 14 billion by 2028 from the current USD 10 billion in 2023, according to research from the Automotive Component Manufacturers Association of India and Ernst & Young. The market is expected to grow on a steady increase in vehicles, which is projected to grow at a CAGR of over 8% in the next five years from the current 340 million units.
“The insights from the research highlight unique opportunities for the Indian auto component aftermarket players. The domestic aftermarket, which was valued at USD 10 billion in 2023, is poised to surge almost 1.4 times in the next five years on the back of growing vehicle demand,” ACMA President Shradha Marwah told reporters today.
The study focuses on seven product categories namely engine parts, suspension and braking parts, transmission parts, braking parts, rubber components, cooling systems, and filters, while tires and consumables such as batteries, coolants, and lubricants were not covered. India, being the third-largest automobile market in the world in terms of sales and the largest manufacturer of two-wheelers and tractors, augurs well for aftermarket growth.
The research that covered 39 countries identified the top ten international markets where it sees a combined export potential of over USD 35 billion by 2028. The markets include Indonesia, Latin America, Poland, Brazil, Columbia and Bangladesh, as well as matured markets, including African countries and UAE, with a substantial number of aging vehicles.
ACMA officials noted that India has signed 13 free-trade agreements in the last five years, improving trade with other nations. “The Indian components suppliers need to focus on building partnerships with international buying groups to gain market access, invest in marketing and branding, increase digital presence, and build collaboration amongst the industry players to provide their joint offerings to tap the global market opportunities,” said Marwah, who is also the chairperson and managing director of Subros.
Meanwhile, the fifth edition of ACMA Automechanika will be held as part of the Bharat Mobility Global Expo from February 1 to February 3 in New Delhi. Automechanika, which primarily focuses on the aftermarket, will see the participation of over 500 companies and have over 50 new products. “The event gives auto component manufacturers from across the world a platform to connect and demonstrate capabilities in the aftermarket,” ACMA Director General Vinnie Mehta said.