The Indian automotive aftermarket is anticipated to reach approximately USD 14 billion by 2028, according to a Global Automotive Aftermarket Research Report by the Automotive Component Manufacturers Association (ACMA) in collaboration with Ernst & Young (EY). The study, covering 39 countries across 6 continents, indicates that the global aftermarket represents an export opportunity of over USD 35 billion for India.
The report focuses on seven product categories: engine parts, suspension and braking parts, transmission parts, braking parts, rubber components, cooling systems, and filters. It estimates that the Indian automotive aftermarket, valued at USD 10 billion in 2023, is expected to grow by nearly 1.4 times to reach USD 14 billion by 2028. However, the study does not include tyres and consumables such as batteries, coolants, and lubricants.
The growth of the Indian aftermarket is driven by a steady 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. Two-wheelers and passenger vehicles are expected to show robust growth in their parcs, reaching 365 million and over 72 million units, respectively, by 2028.
On the international front, the study identifies export opportunities in 10 major markets, with matured aftermarket conditions in countries like Indonesia, LATAM, Poland, Brazil, Columbia, and Bangladesh, and high-growth potential in North Africa, South Africa, East Africa, West Africa, and UAE. The combined export potential to these markets is expected to exceed USD 35 billion by 2028.
Shradha Suri Marwah, President ACMA, emphasised the unique opportunities for Indian auto component aftermarket players and urged a focus on building partnerships, marketing, branding, digital presence, and collaboration within the industry to tap into global market opportunities.
The 5th ACMA Automechanika New Delhi, scheduled from February 1 to 3, 2024, will showcase over 500 exhibitors from more than twelve nations, highlighting aftermarket innovations, technological advancements, and sustainable mobility solutions. The event provides a platform for industry players to connect, exhibit capabilities, and explore business collaborations within the global automotive aftermarket sector.
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