Nov 21, 2012
According to the CII McKinsey Report, Scaling the Indian Automotive Aftermarket, the Indian automotive aftermarket industry is likely to maintain its robust growth trajectory and is expected to grow from INR 28,000 crore to 37,000 crore by 2015
The CII Study said that the automotive aftermarket industry is expected grow around 10% year on year and this growth is primarily driven by increasing vehicle population and a shift in the mix of vehicles towards high end variants.
According to the CII Study, the market structure of the automotive aftermarket in India would begin to consolidate to realize scale benefits, for this, it will be necessary for players to make smart granular choices on where to compete and how to compete” to achieve sustainable and profitable growth.
To decide on where to compete, players must explore opportunities along three dimensions such as;
1. Geographical coverage - Enter the top 100 districts, as these account for over 50% of the total potential
2. Product/service segment - Penetrate fast moving niches as these offer high growth and high margins such as; branded generic parts and auto electronic gadgets/accessories for safety navigations, etc.
3. Value chain: Explore forward integration along the value chain independent distributors can integrate into retail and multi brand service.
Mr Mike Nithavrianakis deputy High Commissioner, British Deputy High Commission said that “India offers conducive environment for industries to invest and has emerged as a fast growing market for various investors. There is a huge scope for collaboration between India and UK in the automotive sector, particularly in the parts and aftermarket products”.
Mr Marc Nassif, Country Head & MD of Renault India in his keynote address said that “India is one of the important market when it comes to automobile. Indian market has tremendous scope and potential for the automobile industry and has witnessed stupendous growth in last couple of years.”
Mr R Dinesh chairman, Auto Serve 2012 & Joint MD, T V Sundram Iyengar & Sons Ltd said that “Auto Serve 2012 is being held at a crucial time when the automotive industry is currently witnessing a slowdown. With this background, Auto Serve 2012 would demonstrate to industry and other stakeholders on enhancing the profitability in the automotive aftermarket business by showcasing state of the art technologies and solutions.”
Source：steelguru.com