The research examines seven product categories: engine parts, suspension and brake components, transmission parts, rubber elements, cooling systems, and filters, excluding tires and consumables like batteries, coolants, and lubricants.
According to a study by the Automotive Component Manufacturers Association of India (ACMA) and Ernst & Young, India’s automotive aftermarket is forecasted to expand from its current value of USD 10 billion in 2023 to USD 14 billion by 2028. This growth is expected to be fueled by a steady increase in vehicle numbers, which are projected to grow at a Compound Annual Growth Rate (CAGR) of over 8% over the next five years, rising from the current 340 million units.
ACMA President Shradha Marwah, in a press briefing, emphasized the significant opportunities this growth presents for Indian auto component aftermarket players. With the domestic market already valued at USD 10 billion in 2023, it is set to experience a 40% increase in the next five years, driven by the escalating demand for vehicles.
The research analyzed seven specific product categories, including engine parts, suspension and brake components, transmission parts, rubber products, cooling systems, and filters. However, it did not encompass tires and consumables such as batteries, coolants, and lubricants. Given India’s status as the third-largest automobile market globally in terms of sales and as the foremost producer of two-wheelers and tractors, the country is well-positioned for substantial aftermarket growth.
In an international context, the study, which spanned 39 countries, identified the top ten international markets with a combined export potential exceeding USD 35 billion by 2028. These markets range from Indonesia, Latin America, and Poland to Brazil, Columbia, Bangladesh, and mature markets like African countries and the UAE, known for their significant number of older vehicles.
ACMA officials highlighted India’s enhanced trade relations, which are marked by 13 free-trade agreements signed in the past five years. Marwah, who is also the Chairperson and Managing Director of Subros, emphasized the need for Indian component suppliers to focus on building partnerships with international buying groups, investing in marketing and branding, enhancing digital presence, and fostering industry collaborations to fully capitalize on these global market opportunities.
Additionally, the fifth edition of ACMA Automechanika is set to take place as a part of the Bharat Mobility Global Expo from February 1 to February 3 in New Delhi. This event, which is primarily focused on the aftermarket, is expected to feature over 500 companies and showcase more than 50 new products. ACMA Director General Vinnie Mehta noted that Automechanika serves as a global platform for auto component manufacturers to connect and exhibit their capabilities in the aftermarket sector.