The Future Looks Bright for the Indian Automotive Aftermarket

The Indian automotive aftermarket is expected to reach a substantial USD 14 billion by 2028, as reported by the Automotive Component Manufacturers Association (ACMA) in collaboration with Ernst & Young (EY). This comprehensive report, encompassing 39 countries across 6 continents, highlights India’s potential to export over USD 35 billion worth of aftermarket products to the global market.

The study delves into seven product categories, including engine parts, suspension and braking parts, transmission parts, rubber components, cooling systems, and filters. It projects a growth from the current value of USD 10 billion in 2023 to nearly 1.4 times that amount by 2028. It is important to note that this projection excludes tyres and consumables such as batteries, coolants, and lubricants.

The growth of the Indian aftermarket can be attributed to the steady increase in the vehicle parc, which currently stands at 340 million and is forecasted to grow at a Compound Annual Growth Rate (CAGR) of over 8% for the next five years. Two-wheelers and passenger vehicles are expected to lead this growth, with their parc numbers projected to reach 365 million and over 72 million units, respectively, by 2028.

On an international scale, the report identifies export opportunities in 10 major markets, with mature aftermarket conditions in countries like Indonesia, LATAM, Poland, Brazil, Colombia, and Bangladesh, and high-growth potential in North Africa, South Africa, East Africa, West Africa, and UAE. The combined export potential to these markets is expected to exceed USD 35 billion by 2028.

Shradha Suri Marwah, President of ACMA, emphasises the unique opportunities for Indian auto component aftermarket players and underscores the importance of building partnerships, marketing, branding, digital presence, and industry collaboration to capitalize on global market opportunities.

In line with this promising outlook, the 5th ACMA Automechanika New Delhi, scheduled to take place from February 1 to 3, 2024, will be a platform for over 500 exhibitors from more than twelve nations to showcase aftermarket innovations, technological advancements, and sustainable mobility solutions. This event will provide an excellent opportunity for industry players to forge connections, showcase their capabilities, and explore potential business collaborations within the global automotive aftermarket sector.