Strategic Analysis of the Indian Automotive Aftermarket
Industry growth will be driven by old vehicle parc and the country’s strong market potential.
Automotive Aftermarket: Key Findings, India, 2014–2021
The passenger vehicle aftermarket is estimated to grow at a CAGR of % for the following reasons:
The growth of vehicles in operation (VIO) is estimated at % ver the forecast horizon, with more vehicles in the to year range requiring replacement.
Vehicle maintenance needs are higher than average in India because of poor road infrastructure and consumption of low-quality fuel.
A strong economic growth forecast combined with an increase in disposable consumer income will drive consumer spending habits on vehicle maintenance.
Global automakers operating in India will increase the amount of locally made parts in vehicles, which they sell in India to cut costs in a competitive market dominated by cheap small cars. This opens up new growth opportunities for original equipment manufacturers (OEM) part providers and would make the market more competitive.
Counterfeit parts account for as much as % of passenger car aftermarket part sales. This is the biggest challenge for the aftermarket and will continue to be unless regulations are imposed on selling these parts.
Due to increased competition in new car retailing, OEMs are looking to extend the relationship with customers by ensuring that they continue to return to their dealerships for their servicing needs.
Unauthorized multi-brand service chains are likely to take market share from original equipment service (OES) and local garages.
India is a highly fragmented market with regional variations and no distributor has complete presence in India.
Gurgaon, Pune, and Bangalore forms the strategic locations for Indian OEMs to establish regional warehouses, which distributes parts in the independent aftermarket.
About this report
This research service analyzes the automotive aftermarket industry in India. It includes a vehicle in operation analysis, discussion of key industry trends, and identification of major market participants. It also includes a manufacturer level revenue forecast and analyses of wholesale parts and service channels. Consumer trends and key conclusions are presented. The base year is 2014, and there are forecasts provided from 2015 through 2021. The vehicle scope is passenger cars and light trucks. The objective is to provide strategic insight for decision makers and potential new entrants. High growth in vehicles in operation and the emergence of India as a global hub will create opportunities for parts and services companies.
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