Indian Automotive Aftermarket Achieves $35 Billion in Exports: ACMA Study
ACMA Reveals Insights from Global Automotive Aftermarket Research Report Ahead of 5th ACMA Automechanika New Delhi. The study, conducted in collaboration with Ernst & Young, highlights that the Indian automotive aftermarket, focusing on seven product categories, reached $10 Billion in 2023. Projections suggest a growth of nearly 1.4 times, reaching an estimated $14 Billion by 2028. Notably, the study excludes coverage of tires and consumables like batteries, coolants and lubricants.
The growth of the automotive aftermarket in India is being propelled by a consistent rise in the vehicle parc, currently standing at 340 million and anticipated to exhibit a Compound Annual Growth Rate (CAGR) of over 8% for the next five years. Notably, the Two-Wheelers and Passenger Vehicles segments are forecasted to experience robust growth, increasing from 257 to 365 million units and around 47 to over 72 million units, respectively, by 2028. Pre-owned car sales are projected to achieve a CAGR of approximately 17.5% until FY 28, driven by organized businesses and online platforms. The commercial vehicle parc is expected to expand from 13 million units to 19 million units by 2028. In the tractor segment, currently contributing close to USD 1 billion to the Indian aftermarket, the parc is set to grow from 14 million units to over 19 million units between 2023 and 2028.
On the global scale, the study encompasses 39 countries, focusing on 10 major export markets and identifying export opportunities exceeding USD 35 billion. Among these markets, Indonesia, LATAM, Poland, Brazil, Colombia, and Bangladesh represent mature aftermarket sectors with a significant number of aging vehicles. In contrast, North Africa, South Africa, East Africa, West Africa, and the UAE are emerging markets showing rapid development and high growth potential. The combined export potential to these ten markets is anticipated to surpass USD 35 billion by 2028.