- March 3, 2020
-- Spire was honored to participate in the Automotive Aftermarket India event held from 26th-28th September in Chennai. Ingrid Rix, Senior Manager at Spire Research and Consulting, Singapore shared an overview of the industry and her insights on growth opportunities.
Ingrid discussed how Indian automotive companies stand to benefit from growing opportunities as the industry is expected to reach close to USD 300 billion in value by 2026.
In 2018, India was the 4th largest manufacturer of cars and 7th largest manufacturer of commercial vehicles in the world. This was largely due to the introduction of government regulations with new safety requirements that encouraged quality. Another factor was emergence of new sales channels like online e-tailing and multi-brand outlets (MBOs).
The automobile aftermarket further showed a healthy annual growth rate of 14% over 2013 to 2018. Drive transmission and steering provided 21% of 2018's aftermarket turnover.
Online e-retailing in this industry is expected to hit USD30 million by 2020. Opportunities in the B2B aftermarket space are being fuelled by the growth of independent and organized workshops.
India is fast becoming a hub for sourcing auto parts. Government policies such as the Voluntary Vehicle Fleet Modernization programme (V-VMP) and Vehicles Scrapping Policy 2018 offer incentives worth 8-12% of the cost of a new vehicle when surrendering an old one.https://www.spireresearch.com/newsroom/events/spire-offers-insights-on-indias-fast-growing-automotive-aftermarket/