Indian Automotive Component Industry Set to Reach $14 Billion by 2028
ACMA Forecasts Robust Growth in Aftermarket Segment Amid Rising Vehicle Parc
Pune: The Indian automotive component industry is expected to touch $14 billion or Rs 116,634 crore by 2028, and the aftermarket segment has a $35 billion or Rs 291,585 crore opportunity, the Automotive Component Manufacturers Association of India or ACMA said on Monday.
As per the Global Automotive Aftermarket Research Report, the size of the Indian automotive aftermarket stood at USD 10 billion in 2023.
The growth of aftermarket in India is being fuelled by a steady increase in the vehicle parc — number of vehicles running on the road — which currently stands at 340 million and is expected to grow at a CAGR of over 8 per cent for the next five years.
"The Indian domestic aftermarket, valued at USD 10 billion in 2023, is poised to surge almost 1.4 times over the next five years on the back of growing vehicle demand and promising capabilities of the Indian aftermarket players," Shradha Suri Marwah, President at ACMA and MD at Subros said in a statement.
Besides, key ten international markets offer export opportunities of over USD 35 billion, she pointed out.
The report focused on seven product categories namely engine, suspension, braking and transmission parts along with rubber components, cooling systems and filters.
Tyres and consumables such as batteries, coolants, and lubricants are not covered in the study.
The report said the two-wheeler and passenger vehicle parcs are projected to show robust growth from 257 to 365 million units and from around 47 to over 72 million units respectively by 2028.
The pre-owned cars sales are projected to grow around 17.5 per cent CAGR until FY 28, fuelled by organised businesses and online platforms, the report noted.
Similarly, the commercial vehicle parc is expected to grow from 13 million units to 19 million units in 2028.
The tractor segment currently contributes close to USD 1 billion to the Indian aftermarket and the parc is expected to grow from 14 million units to over 19 million units during the 2023-28 period, the report said.