In anticipation of the Bharat Mobility Global Expo 2024, the Automotive Component Manufacturers Association (ACMA) has underscored the importance of more localisation in the Indian auto component sector. According to ACMA, this move towards localisation will propel the domestic auto component aftermarket to reach a substantial $14 billion by the year 2028.
Responding to questions from Republic Business, Shradha Suri Marwah, President of ACMA, emphasized the critical role of quality control, cost-effectiveness, business scale enhancement, and digitisation in fostering global partnerships within the auto component industry. Marwah, who is also the Chairperson and Managing Director at Subros Ltd, highlighted the significance of localisation, stating that it makes the industry more competitive and globally accessible.
Speaking during the curtain raiser event of the “5th ACMA Automechanika” set to be held at the Bharat Mobility Global Expo 2024 from February 1-3, Marwah urged Indian auto component suppliers to strategise differently for various global markets. She stressed the need for building partnerships with international buying groups, investing in marketing and branding, increasing digital presence, and fostering collaboration within the industry to tap into global opportunities.
Marwah also noted the industry’s increasing reliance on e-commerce portals, pointing out that the use of Internet of Things (IoT) can further contribute to the growth of the auto component industry.
ACMA E&Y Report:
ACMA, in collaboration with Ernst & Young, conducted the “Global Automotive Aftermarket Research Report,” focusing on seven product categories including engine parts, suspension and braking parts, transmission parts, braking parts, rubber components, cooling systems, and filters.
The report highlighted that the Indian automotive aftermarket, with a size of $10 billion in 2023, is expected to grow by almost 1.4 times, reaching an estimated $14 billion by 2028. However, the study does not cover tyres and consumables such as batteries, coolants, and lubricants.
The growth of the aftermarket in India is attributed to the steady increase in the vehicle parc, projected to grow at a CAGR of over 8% for the next five years. Two-wheelers and passenger vehicles are expected to show robust growth, with pre-owned car sales projected to grow at around 17.5% CAGR until FY 28.
In the international arena, the study covers 39 countries and focuses on ten major export markets, identifying over $35 billion worth of export opportunities. The combined export potential to the top ten markets is expected to grow to over $35 billion by 2028.
Vinnie Mehta, Director General of ACMA, expressed enthusiasm about the 7.5% growth witnessed in the first half of FY24 for Indian auto component makers. He attributed this growth to increased demand for pre-owned vehicles, a shift towards larger vehicles, and the growing formalisation of the repair and maintenance market.
Mehta also highlighted the positive response from both domestic and international players for participation in the ACMA Automechanika New Delhi 2024, stating that the event provides a platform for global auto component manufacturers to connect and showcase their capabilities in the aftermarket.
