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Strategic Analysis of the Indian Automotive Aftermarket

  • Executive Summary
    • Key Findings
    • Aftermarket Parts Revenue Distribution by Product Category
    • Automotive Aftermarket-Market Share by Channel and Repair Service Providers
    • Automotive Aftermarket-Key Growth Drivers
    • Automotive Aftermarket-Growth Opportunities for Industry Participants
    • Key Factors to Consider for Entering the Indian Aftermarket
    • Aftermarket Structure for Parts Supply
  • Research Scope, Objectives, Background, and Methodology
    • Research Scope
      • Table Automotive Aftermarket: Vehicles in Operation by Type, India, 2014-2021
    • Research Aims and Objectives
    • Key Questions This Study Will Answer
    • Research Background
    • Research Methodology
    • Key Participant Groups Compared in This Study
  • Definitions and Segmentation
    • Market Definitions
    • Vehicle Segmentation-Passenger Vehicles
    • Industry Segmentation
  • Country Overview
    • Country Overview-India
    • PESTLE Overview-India
    • Alternate Propulsion Technologies
  • Automotive Aftermarket Overview
    • Automotive Aftermarket-Top Trends
    • Major Aftermarket Trends-2014
    • Automotive Aftermarket Roadmap
  • Vehicles in Operation Analysis
    • Vehicles in Operation by Type
      • Table Automotive Aftermarket: Vehicles in Operation by Type, India, 2011-2021
    • Passenger VIO by Type
      • Table Automotive Aftermarket: Passenger Vehicles in Operation by Type, India, 2011-2021
    • Passenger Vehicles in Operation by Age and Region
    • Passenger Vehicles in Operation by Brand
  • Parts Analysis
    • Automotive Aftermarket-Manufacturer-level Replacement Parts Revenue
      • Table Automotive Aftermarket: Manufacturer-level Replacement Parts Revenues by Category, India, 2014-2021
    • Indian Tires Aftermarket
    • Replacement Rate of Frequently Replaced and Safety Related Parts in Indian Aftermarket
    • Automotive Aftermarket-Top Suppliers
    • Challenges in the Aftermarket
    • Parts Aftermarket Structure
    • Competitive Evaluation of the Parts Aftermarket-Strengths and Weaknesses of Organized and Unorganized Sectors
  • Service Analysis
    • Automotive Aftermarket-Service Centers by Type
    • ASC Outlook
    • Unauthorized Multi Brand Service Chains Outlook
    • OES Multi-brand Service Chain Outlook
    • Multi Brand Service Chains-Parts Procurement
    • Independent Garages Outlook
    • Independent Garages-Labor Charges
  • Distribution Channel Analysis
    • Automotive Aftermarket-Distribution Structure
    • Aftermarket Structure for Parts Supply
    • Automotive Aftermarket-Market Share by Channel and Repair Service Providers
    • OEM Sales and Aftersales Outlook
    • OEM Aftersales Market Structure
    • OEM Independent Aftermarket Distribution Networks
    • Maruti Suzuki-Aftermarket Parts Supply Chain
    • Tata Motors-Aftermarket Parts Supply Chain
    • Hyundai-Aftermarket Parts Supply Chain
    • OEM Parts Sales Route to Vehicle Owner-Strengths and Weaknesses
    • Distributors/Wholesalers Outlook
    • Distributors/Wholesalers-Parts Sourcing and Sales
    • Retailers-Outlook
    • Retailers-Parts Sourcing and Sales
    • Top Distributors
    • Key Success Factors
  • OES Channel Analysis
    • OES Channel-Key Trends
    • OES Channel
    • Key Trends in Passenger Vehicle Dealerships
    • Dealership Throughput for Major Automakers
      • Table Dealership Throughput for Major Automakers
    • Competitive Benchmarking of Dealers
    • Profit Optimization for Dealerships-Online Presence
    • How Mahindra & Mahindra is Leveraging Online Presence and Social Media Effectively
    • Impact of New Vehicle Warranties on the Aftermarket
  • Regulatory Influences
    • Automotive Aftermarket-2014 Emission Norms and Regulations
    • Automotive Aftermarket-Auto Policy 2002 and Auto Mission Plan 2006-2016
    • Impact of Regulations on the Automotive Aftermarket
  • Technology Trends
    • Automotive Aftermarket-Technology Applications
  • Consumer Trends
    • Attitudes and Behaviors of Indian Vehicle Owners
    • Consumer Behavior Trends by Service Type
  • Why Market Participants Should Consider Entering the Indian Aftermarket
    • Key Factors to Consider for entering the Indian Aftermarket
    • Country Attractiveness-Automotive Clusters in India
    • Success Stories
    • Opportunities in Part Sourcing from India
    • Domestic Supply Base
    • Well Developed Domestic Supply Base
  • Conclusions and Future Outlook
    • Key Conclusions and Future Outlook
    • The Last Word-3 Big Predictions
  • Appendix
    • Table of Acronyms Used
    • Planned 2014 Research
    • Market Engineering Methodology

Strategic Analysis of the Indian Automotive Aftermarket

Key Findings

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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