According to a report commissioned by industry group ACMA in partnership with Ernst & Young, the domestic auto parts aftermarket is expected to reach a level of $14 billion by 2028 due to the steady growth of the domestic auto market. is expected to reach.
According to the Global Automotive Aftermarket Research Report, the automotive aftermarket will reach USD 10 billion in 2023.
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The growth of the Indian aftermarket is being driven by a steady increase in the vehicle population (number of vehicles on the roads) which currently stands at 340 million units and is expected to grow at a CAGR of over 8% in the coming years. It’s been five years, he added.
Shraddha Sri Marwah, Chairman, ACMA, said, “India’s domestic aftermarket is expected to be valued at $10 billion in 2023 and will grow in the next five years on the back of rising automotive demand and promising capabilities of Indian aftermarket companies. It is expected to grow rapidly by approximately 1.4 times.” statement.
Furthermore, he pointed out that the 10 major international markets offer export opportunities of over $35 billion.
This report focuses on seven product categories: engines, suspensions, brakes, transmission parts, rubber parts, cooling systems, and filters. Tires and consumables such as batteries, coolants, and lubricants are not included in the survey.
According to the report, sales of two-wheelers and passenger cars are expected to show strong growth from 257 million to 365 million units and approximately 47 million to more than 72 million units by 2028, respectively. Masu. Used car sales are expected to increase by approximately 17.5 times. Driven by organized business and online platforms, it said it will grow at a CAGR of % till FY28.
Similarly, commercial vehicle parks are expected to grow from 13 million vehicles to 19 million vehicles in 2028. The tractor sector currently contributes nearly US$ 1 billion to the Indian aftermarket and the commercial vehicle park is expected to grow from 14 million units to over 19 million units from 2023 to 2028, according to the report. Production volume is expected to increase during the year.
On the export side, the report said five markets have mature aftermarkets and significant numbers of aging vehicles: Indonesia, Latin America, Poland, Brazil, Colombia and Bangladesh.
Meanwhile, markets such as North Africa, South Africa, East Africa, West Africa and the UAE are developing rapidly and offer high growth opportunities, it added.
The combined export potential to these 10 markets is expected to exceed USD 35 billion by 2028, the report claims.
The 5th ACMA Automechanika will be held from February 1 to 3 at the Bharat Mandapam, said Vinny Mehta, Director General, Automotive Components Manufacturers Association of India (ACMA). He said the event will be attended by more than 500 exhibitors from more than 12 countries. , he added.