The local auto component aftermarket is predicted to reach USD 14 billion by 2028, driven by strong development in the country’s car park, according to research commissioned by industry group ACMA in collaboration with Ernst & Young. According to the Global Automotive Aftermarket Research Report, the automotive aftermarket was valued at USD 10 billion in 2023.
The rise of the aftermarket in India is being driven by a constant increase in the vehicle parc — the number of cars on the road — which presently stands at 340 million and is predicted to expand at a CAGR of more than 8% over the next five years, the report stated. “The Indian domestic aftermarket, valued at USD 10 billion in 2023, is poised to surge almost 1.4 times over the next five years on the back of growing vehicle demand and promising capabilities of the Indian aftermarket players,” according to a statement issued by the ACMA.
Furthermore, she stated that the top 10 overseas markets provide export potential worth more than USD 35 billion. The analysis concentrated on seven product categories: engine, suspension, brake and transmission parts, rubber components, cooling systems, and filters. The study excludes tires and consumables like batteries, coolants, and lubricants.
According to the analysis, the two-wheeler and passenger car markets are expected to rise significantly by 2028, from 257 to 365 million units and 47 to more than 72 million units, respectively. According to the report, pre-owned automobile sales are expected to expand at a CAGR of roughly 17.5% until FY 28. This growth will be driven by organized companies and internet platforms.
Similarly, the commercial vehicle fleet is predicted to increase from 13 million to 19 million units by 2028. The tractor category presently provides about USD 1 billion to the Indian aftermarket, and the parc is predicted to increase from 14 million to more than 19 million units between 2023 and 2028, according to the research.
On the export front, five markets—Indonesia, LATAM, Poland, Brazil, Columbia, and Bangladesh—have matured aftermarkets with a significant number of aging cars, it noted. On the other hand, markets such as North Africa, South Africa, East Africa, West Africa, and the UAE are rapidly expanding and provide significant growth potential, according to the report.
The overall export potential for these 10 markets is estimated to exceed USD 35 billion by 2028, according to the research. Vinnie Mehta, Director General of the Automotive Component Manufacturers Association of India (ACMA), announced that the 5th edition of ACMA Automechanika would be hosted at Bharat Mandapam from February 1 to 3. He noted that the event would include over 500 exhibitors from more than 12 countries.
