The automotive aftermarket in India is expected to increase from its current USD 10 billion in 2023 to USD 14 billion by 2028, as per research conducted by Ernst & Young and the Automotive Component Manufacturers Association of India. Vehicle sales are predicted to rise steadily over the next five years, with a compound annual growth rate (CAGR) of more than 8% from the present 340 million units.
The research’s findings point to special chances for companies in the Indian auto component aftermarket. Due to rising vehicle demand, the local aftermarket—which was estimated to be worth USD 10 billion in 2023—is expected to rise by about 1.4 times over the next five years, ACMA President Shradha Marwah told reporters today.
Tyres and consumables like batteries, coolants, and lubricants were not examined in the study; instead, it concentrated on seven product categories: engine parts, suspension and braking parts, gearbox parts, braking parts, rubber components, cooling systems, and filters. India, the world’s largest producer of tractors and two-wheelers and the third-largest vehicle market in terms of sales bodes well for the expansion of the aftermarket.
The top ten foreign markets, with a total export potential of over USD 35 billion by 2028, were determined by the 39-country study. In addition to developed nations with a significant number of older cars, such as those in the United Arab Emirates and Africa, the markets include those in Indonesia, Latin America, Poland, Brazil, Columbia, and Bangladesh.
India’s automotive market
In the past five years, India has inked thirteen free-trade agreements, increasing trade with foreign countries, according to ACMA officials. Marwah, who is also the managing director and chairperson of Subros, stated that “the Indian component 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 among the industry players to provide their joint offerings to tap the global market opportunities.”
Concurrently, from February 1 to February 3, in New Delhi, the Bharat Mobility Global Expo will host the fifth edition of ACMA Automechanika. Over 500 firms will participate in Automechanika, which largely caters to the aftermarket, and over 50 new products will be introduced. According to ACMA Director General Vinnie Mehta, “The event gives auto component manufacturers from across the world a platform to connect and demonstrate capabilities in the aftermarket.”
