Automotive Component Manufacturers Association of India (ACMA), the apex body of the Auto Component Industry in India today announced the findings of its study – ‘Indian Automotive Aftermarket; The Road Ahead’.
The study takes a holistic view of the aftermarket business potential with the growing impact of urbanization in terms of changing customer preferences, choice of vehicle ownerships, evolving taxi market and a rise in pre-owned car segment. The study also highlights the average vehicle age in India and changing replacement frequencies and servicing patterns in passenger vehicles, two wheelers, commercial vehicles, tractors and off roads.
Frost & Sullivan, ACMA’s knowledge partner for the study conducted a research through a wide coverage of interviews and data collection from various stakeholders in India.
Speaking on the findings of the study, Mr Vinnie Mehta, Director General, ACMA said “The Indian automotive aftermarket stood at Rs 56,098 Crore (USD 8.4 billion) in 2016-17 with a total vehicle parc of 228.7 across the country. The Indian automotive aftermarket is expected to reach Rs 75,705 Crore (USD 13 billion) by 2019-20 exhibiting a CAGR of 10.5 percent.”Also read: Bharti Airtel to Acquire Tikona Networks' 4G Business
Some of the key findings of the study include:
• The current total vehicle population in the country is estimated at around 228.7 million vehicles according to State Transport Authorities across the country
• In the passenger vehicle segment, the genuine OE spares account for around 40 percent of the total components consumption while the remaining 60 percent is split evenly between IAM (Independent After Market) branded parts and U-parts (Parts from Unorganised segment)
• The IAM branded parts consumption is highest in the CV segment, estimated at 50 percent of the total consumption, while the tractor segment exhibits the highest consumption of U-parts at 40 percent
• Maharashtra shows the highest number of registered 2 wheelers, 3 wheelers and commercial vehicles
• The NCR (Northern Capital Region) region shows the highest population of passenger cars, with Maharashtra ranking second
• The NCR region and Greater Chennai have the highest population of 2 wheelers at 6.1 million and 5.1 million respectively
• Greater Mumbai has the highest number of 3 wheeler registrations at 3,65,500 vehicles.
• The highest commercial vehicle registrations are noted in the NCR region, Greater Hyderabad, Greater Mumbai and Bengaluru
• Bhatinda and Ferozpur have the highest tractor populations at 72, 900 and 71,000 units respectively
• Of the total Indian aftermarket, 2 and 3 wheeler segments accounts for around Rs 12,038 Crore, while the passenger car segment accounts for around RS 18,970 Crore, commercial vehicle for around Rs 19,748 Crore and tractor for Rs 5,342 Crore
• Gujarat features in the top 5 states for replacement market across all vehicle segments, while Maharashtra features in the top 5 across all vehicle segments except for the tractor segment
• The penetration of counterfeit auto components has drastically reduced from 36 percent 2010-11 to 5 percent in 2016-17, however their place has been taken up by U-parts.
The report concludes with the coverage on the alternate fuel technologies in India, growing localization of products and affordability of such new age technology in vehicles.Also read: Nokia Reveals 4G as India's Major Source of Data Traffic
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