The Indian automobile aftermarket is slated to reach a value of USD 14 million by 2028, informed Automobile Components Manufacturer’s Association (ACMA) officials in a recent press conference held at Delhi in the run up to ACMA Automechanika aftermarket fair scheduled to be held from 1 February to 3 February at Pragati Maidan. 

The figures – insights from the organisation’s Global Automotive Aftermarket Research Report that was conducted in partnership by Ernst & Young – point at an aftermarket expansion in the wake of a consistent rise in the vehicle population, currently standing at 340 million and anticipated to exhibit a compound annual growth rate (CAGR) of eight percent till FY2028. 

Notably, the two-wheeler and passenger vehicles segments are poised for substantial growth, with projections indicating an increase from 257 to 365 million units and from approximately 47 to over 72 million units, respectively, by 2028. 

Pre-owned car sales are forecasted to experience a robust 17.5 percent CAGR until FY2028, propelled by organised businesses and online platforms. Furthermore, the commercial vehicle parc is set to expand from 13 million units to 19 million units by 2028. 

In the tractor segment, which presently contributes nearly USD 1 billion to the Indian aftermarket, the parc is expected to escalate from 14 million units to over 19 million units during the period.

The study, centering on seven key product categories including engine parts, suspension and braking parts, transmission parts, rubber components, cooling systems and filters—reveals that the Indian automotive aftermarket reached a valuation of USD 10 billion in 2023. 

Internationally, the study spanned 39 countries, concentrating on 10 significant export markets and pinpointing export opportunities exceeding USD 35 billion. Among these markets, Indonesia, LATAM, Poland, Brazil, Colombia and Bangladesh feature as a mature aftermarket with a significant number of aging vehicles. 

In contrast, North Africa, South Africa, East Africa, West Africa and the UAE are rapidly evolving markets, presenting substantial growth prospects. The collective export potential to these ten markets is projected to surpass USD 35 billion by 2028.

Speaking about the market potential for the industry, ACMA President, Shradha Suri Marwah, said, "The insights from the research highlight unique opportunities for the Indian auto component aftermarket players. The Indian components suppliers need to focus on building partnerships with international buying groups to gain market access, invest in marketing and branding, increase digital presence and build collaboration amongst the industry players to provide their joint offerings to tap the global market opportunities.”

Expressing his views on the performance of the industry, Director General of ACMA, Vinnie Mehta, said, “The Indian auto component makers witnessed a promising 7.5 percent growth in the first half of FY24 due to increased demand for pre-owned vehicles, preferential shift towards larger vehicles and the increasing formalisation of the repair and maintenance market. On the back of fast-growing aftermarket opportunities, we are thrilled with the response for participation, from both domestic and international players, at the ACMA Automechanika 2024. The event gives auto component manufacturers from across the world a platform to connect and demonstrate capabilities in the aftermarket. The exhibition has been seamlessly integrated into Bharat Mobility Global Expo 2024.”

Gulf Oil Lubricants India, part of the Hinduja Group, has inked a strategic partnership with Nayara Energy, a leading private fuel retailer and an integrated downstream company in the country.

As per the understanding, Nayara Energy will make available Gulf Oil’s entire automotive product range, including lubricants for two-wheelers, passenger cars, commercial vehicles and agriculture-related vehicles, at its network of over 6,500 fuel retail outlets.

The association is part of a three-year contract will also see Gulf Oil make available its AdBlue and two-wheeler batteries among others at Nayara’s network.

Ravi Chawla, MD and CEO, Gulf Oil Lubricants India, said, “Our partnership with Nayara Energy is a significant step forward in expanding Gulf’s presence across India’s highways and fuel stations. As a globally recognised brand, Gulf has consistently set benchmarks in delivering high-quality and innovative automotive solutions. Our partnerships with iconic global and domestic brands like Manchester United, McLaren, MS Dhoni, and Chennai Super Kings have cemented our position as a trusted name worldwide. With the support of Nayara’s vast network and expertise in fuel retailing, we are well-positioned to serve a wide range of consumers with high-quality, dependable automotive solutions. This collaboration underscores the growing demand for quality automotive products and lubricants owing to the burgeoning infrastructure growth and both Gulf’s and Nayara Energy’s commitment to making our products accessible, ensuring that our customers receive quality lubrication solutions wherever they are in India.”

Madhur Taneja, Chief Marketing Officer, Nayara Energy, added, “At Nayara Energy, we believe that customer centricity is at the core of creating a distinctive service experience across our expansive retail network. This latest tie-up with Gulf Oil is another affirmative step to enhance our range of automotive product offerings that enable in delivering high quality performance for motorists. Together, these two power brands can leverage synergies that will enable in amplifying reach and ensure ease of availability of premium product experience for consumers across rapidly growing tier 2,3 markets and prominent highways. Lubes are an essential category in our NFR (Non-Fuel Retail) offerings and our commitment to grow this category is visible from the Quick Lube Change Bays we have incorporated in our Retail Outlet. These Quick Lube Change bays are equipped with advanced machinery that enables lube change in less than 5 minutes and this service is provided Free of charge at our outlets.”

The 55th Goods & Services Tax (GST) council meeting has decided to increase the GST rate on the sale of pre-owned vehicles to 18 percent from the current 12 percent.

The hike will now also be applicable to electric vehicles margin value, when the transaction happens by registered businesses dealing with used vehicles. But in case an EV is sold by the vehicle owner to another individual there will be no GST applicable.

The hike the government believes will bring parity between used old small cars, EVs with old larger vehicles.

The GST council clarified that the tax will be applicable only on the margin of the seller, and not on the entire value of the car. For instance, if a vehicle is bought for INR 1 million and sold at INR 600,000, the tax will be on the margin value of INR 400,000.

Representational image courtesy: Tom Fisk/Pexels

Tier 1 supplier Schaeffler India has appointed Sharad Bhatia as the new Head of Vehicle Lifetime Solutions (VLS), effective 2 December 2024.

In his new role, he is tasked to lead Schaeffler India’s efforts to strengthen presence in the mobility ecosystem.

Bhatia comes with over 24 years of experience in the automotive parts industry and will be instrumental in expanding Schaeffler India’s VLS business on the back of his deep expertise in aftermarket service parts sector.

Harsha Kadam, MD & CEO, Schaeffler India, said, “We are delighted to welcome Sharad Bhatia to Schaeffler India as Head of Vehicle Lifetime Solutions. The Vehicle Lifetime Solutions business is an important business division for the strategic growth of Schaeffler in India. His extensive background in the aftermarket business, combined with his experience in multinational markets, aligns well with our strategic goals. Sharad’s leadership will be pivotal in strengthening and enhancing the agility of our VLS business, further reinforcing our commitment to sustainable motion technology solutions in India.”

Sharad Bhatia, added, “I am excited to join Schaeffler India at a time when the automotive industry is rapidly transforming. My focus will be on expanding our aftermarket solutions portfolio by leveraging advanced motion technology to deliver value and innovation. I look forward to working closely with the talented team at Schaeffler India to strengthen our Vehicle Lifetime Solutions division and provide our customers with sustainable, reliable, and forward-looking solutions.”

Tier 1 automotive supplier Uno Minda has launched what it claims is India’s first GPT-enabled Android music system - Wtunes-464DN-GPT - in the aftermarket for INR 49,999.

The GPT-enabled infotainment unit has a built-in voice command feature. It also has an inbuilt 360deg camera controller for improved safety, high-definition audio with 208W output, and advanced digital signal processing (DSP). It has a dynamic equalizer that allows personalised audio settings and split-screen functionality for multitasking. The music unit also comes with a microphone, screws, a 4G antenna, and wiring with a SIM card slot.

Rakesh Kher, CEO, Uno Minda Aftermarket Division, said, “Featuring an integrated AI assistant, the Wtunes-464DN-GPT introduces a new level of control and immersion. Unlike traditional desktop setups that rely on typing, this cutting-edge product from Uno Minda incorporates GPT with intelligent voice commands, providing real-time assistance for professionals who require immediate information. This makes it especially beneficial for busy individuals on the go, perfectly exemplifying the concept of infotainment—delivering both information and entertainment effortlessly while traveling. The advanced QLED resolution (2000 x 1200p) provides a sharper, more vivid display, while Digital Signal Processing (DSP) enhances sound quality for clear audio. The capacitive touch panel offers intuitive control, and with a powerful output of 208W (4x52W), you'll feel every beat.”

The infotainment unit offers wireless and wired connections supporting both Android Auto and Apple CarPlay. It also provides support for variety of apps for navigation including Google Maps.