The Indian auto after-market is expected to enter double-digit growth curve in the coming years after being in negative zone for 2-3 years in the recent past.

“Presently, the size of the Indian auto after-market including all categories is estimated at about $7 billion. I expect the sector to achieve a growth of 10-12 per cent going forward if the industry maintained the projected growth rates,” R Dinesh, Chairman, Auto Serve 2016 and Joint Managing Director, T V Sundram Iyengar & Sons Ltd said here.

His optimism for growth despite technological changes and lesser repair trend in the auto industry stems from the fact that India has now enough vehicle population to drive business for after-market segment.

“In the recent past, pre-repair period of vehicles significantly extended and hence the after-market was impacted. Though vehicle growth was 5-6 per cent, utilisation levels of vehicles were not enough to drive growth. So, industry didn’t have growth for two years.

“Now, we have crossed the inflexion point and the market has enough vehicle population. It doesn’t matter whether the usage pattern or technology changes, but the repairs will automatically come and the service needs will increase,” said Dinesh. Meanwhile, he also indicated that auto after-market would undergo huge changes in the wake of infusion of new technology that will see more electronics in vehicles and rising digital influence.

Support needed

There is a need to support the after-market ecosystem with investment and technology and OEMs and auto parts markers should work jointly to create a platform to address the knowledge gap in vehicle servicing, he felt.

After releasing a CII and Frost & Sullivan report on After Market, K Pandiarajan, Minister for School Education, Sports & Youth Welfare, and Government of Tamil Nadu highlighted the State’s expertise in service of automobiles by referring to clusters such as Namakkal and Pudupet in Chennai.

CII Auto Serve 2016, which is the seventh edition in its series, showcases new trends and technologies in the Indian automotive aftermarket segment with special focus on automation, IT, environment and safety.

CII proposes to form a Task Force on the After-market segment for collaborating component manufacturers, vehicle manufacturers and individual participants for the benefit of the sector.

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