Domestic auto component aftermarket expected to touch US$ 14 billion mark by 2028: ACMA study
According to a report by the Automotive Component Manufacturers Association (ACMA) in collaboration with Ernst & Young, the domestic auto component aftermarket, which stood at US$ 10 billion in 2023, is projected to reach the US$ 14 billion mark by 2028. This growth is attributed to the expanding vehicle parc in India, which currently stands at 340 million and is anticipated to grow at a compound annual growth rate (CAGR) of over 8 percent for the next five years.
ACMA President Ms. Shradha Suri Marwah highlighted the potential of the Indian aftermarket, driven by increasing vehicle demand and the capabilities of domestic players. Additionally, the report identifies export opportunities exceeding US$ 35 billion in ten international markets. Key product categories analysed in the report include engine, suspension, braking and transmission parts, rubber components, cooling systems, and filters. Notably, tyres and consumables such as batteries, coolants, and lubricants are not covered in the study.
The report forecasts substantial growth in the two-wheeler and passenger vehicle parcs, as well as pre-owned car sales, with a significant contribution from organized businesses and online platforms. The commercial vehicle parc and the tractor segment are also expected to grow during the 2023-2028 period, further contributing to the expansion of the Indian aftermarket industry.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.