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The Indian automotive component industry is projected to reach $14 billion (₹116,634 crore) by 2028, according to the Global Automotive Aftermarket Research Report conducted by the Automotive Component Manufacturers Association (ACMA) in collaboration with Ernst & Young. Notably, the aftermarket segment alone presents a $35 billion (₹291,585 crore) opportunity. The study focuses on seven product categories, excluding tires and consumables, and estimates the Indian automotive aftermarket to grow from $10 billion (₹83,310 crore) in 2023 to $14 billion by 2028.
The growth in the aftermarket is fueled by an increase in the vehicle parc, which currently stands at 340 million and is projected to grow at a Compound Annual Growth Rate (CAGR) of over 8% for the next five years. The parcs for two-wheelers and passenger vehicles are expected to show robust growth, reaching 365 million units and over 72 million units, respectively, by 2028. Pre-owned car sales are projected to grow at a CAGR of around 17.5% until FY 2028, driven by organized businesses and online platforms. The commercial vehicle parc is expected to grow from 13 million units to 19 million units by 2028.
On the international front, the study covers 39 countries and focuses on 10 major export markets, identifying over $35 billion worth of export opportunities. Among these markets, Indonesia, LATAM, Poland, Brazil, Colombia, and Bangladesh have matured aftermarkets with a significant number of aging vehicles, while North Africa, South Africa, East Africa, West Africa, and the UAE are fast-developing markets with high growth opportunities. The combined export potential to these 10 markets is expected to exceed $35 billion by 2028.
ACMA President Shradha Suri Marwah highlighted the unique opportunities for Indian auto component aftermarket players, emphasizing the need for building partnerships with international buying groups, investing in marketing and branding, increasing digital presence, and fostering collaboration among industry players to tap global market opportunities.
Vinnie Mehta, Director General of ACMA, noted a promising 7.5% growth in the first half of FY2024 for Indian auto component makers. He expressed enthusiasm for the response from both domestic and international players participating in the ACMA Automechanika New Delhi 2024 event, which provides a platform for showcasing capabilities in the aftermarket and exploring global collaborations. The event features over 500 exhibitors from more than 12 nations and includes country pavilions from Japan, Germany, Korea, Taiwan, and Thailand.
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