1
The changing Aftermarket Industry and
how Indian Automotive ancillaries can
benefit from arising opportunities
Prepared for:
Singex
Prepared by:
Spire Research and Consulting
Date:
28th September 2019
2
Topic
1 Automotive Market
1a Overview
1b Segmentation of four wheelers
1c Tire Industry-Overview
1d Tire Industry-Key Players
2 Automotive Aftermarket
2a Overview & Trends
2b Online E-retailing
2c Safety & Security
2d Auto Components Export
3 Summary
Agenda
3
Automotive Market – Overview
4
Automobile Industry in India – Overview
The automobile industry in India is the world’s fourth largest vehicle market. In 2018 India was the world's 4th largest
manufacturer of cars and 7th largest manufacturer of commercial vehicles.
Indian automotive industry (including component manufacturing) is expected to reach INR16-18 trillion (USD251-283
billion) by 2026.
35
39 39
44
51
2 2
2.2
2.5
2.6
0
1
2
3
0
20
40
60
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
i
n
M
ill
io
n
s
In
B
ill
io
n
s
Size of the market FY19
Overall Revenue of Auto Components Number of Automobiles Sold in India
Source: SIAM Society of Indian Automobiles.
5
81%
13%
4% 3%
Automobile Domestic Sales
Trends FY19
Two Wheelers Passenger Vehicles
Commercial Vehicles Three Wheelers
Automobile Industry in India – Overview
Source: SIAM Society of Indian Automobiles.
Domestic sales are dominated by large number of two wheeler vehicles. In 2017, India surpassed China to become
the world’s biggest market for two wheelers.
A total of 21.1 million units were sold last year, which comes down to 58,000 units every day.
6
Automobile Industry in India – Segmentation of
four wheelers
50%
26%
24%
Automobile Domestic Sales Trends
2018
Hatchbacks SUV's and MUV's Sedans
Indian Market has been known for the market for hatchbacks. Even the government has implemented rules to allow
the development of cars under 4 metres, as they attract lesser duty and other taxes. Petrol engines smaller than 1.2-
litre and diesel engines that are under 1500cc, have a lesser excise duty. This helps to increase fuel efficiency and also
reduce pollution.
Total Number of Commercial
Vehicles Sold in 2018
1,007,319
7
Tire Industry: Overview
Key Figures for FY2018:
No. of Tyre Companies in India: 41
No of Tyre Plants in India: 62
Industry Turnover 2018-19 (est.): INR63000 crore (USD9 Bn)
Exports 2018-19 (est.): INR12890 crore (USD1.8 Bn)
0%
20%
40%
60%
80%
100%
38%
30%
62%
70%
Distribution across various
channels
Aftermarket OEM+exports
58%
28%
14%
Global
Truck & Bus
Passenger Vehicle (PV)
2/3-Wheeler
55%
22%
13%
10%
Indian
Truck & Bus
Passenger Vehicle (PV)
2/3-Wheeler
Others
Distribution of exports/sales of
Tyres manufactured in India FY18
2011 2018
8
Tire Industry: Key Players and Plant Locations
• Limda, Gujrat
• Perambra, Kerala
• Kalamessey, Kerela
• Orgadam, Tamilndadu
• Chittor, Andhra Pradesh*
• Kankroli, Rajasthan
• Banmore, Madhya Pradesh
• Mysore (2), Karnataka
• Sriperumbudur, Tamil Nadu
• Haridwar, Uttrakhand
• Balasore, Orissa • SIPCOT Thiruvallur, Tamil Nadu
• Dhar, Madhya Pradesh
• Pune, Maharashtra
• Chennai, Tamil Nadu
• Arkonam, Tamil Nadu
• Trichy, Tamil Nadu
• Puducherry
• Medak, Telangana
• Poda, Goa
• Kottayam, Kerala
• Baruch, Gujarat*
• Mumbai, Maharashtra
• Halol, Gujarat
• Ambarnath, Maharashtra
• Nasik, Maharashtra
• Nagpur, Maharashtra
• Sriperumbudur, Tamil Nadu* • Bahadurgarh, Haryana
• Modipuram, Uttar Pradesh • Rudrapur, Uttarakhand
• Madurai, Tamil Nadu
• Baliabhgarh, Haryana
• Aurangabad, Maharashtra
9
Automotive
Aftermarket
Overview and Trends
Online E-retailing
Government Regulations
Auto Components Export
10
Automotive Aftermarket
The Automotive Aftermarket refers to the manufacturing, retailing and installation of all vehicle parts
after the sale by the OEM (Original Equipment Manufacturer).
The automotive aftermarket is broadly divided into three sectors:
The post warranty vehicle (>4 years) service market was mainly captured by small independent
garages i.e. the unorganized sector because of the huge cost differences (of after warranty
services) between authorized and local garages.
46%
52%
1% 1%
Automobile Aftermarket FY19
Organized Single
Brand Outlet
Unorganized
MBOs/ Workshops
Organized Multi
Brand Outlets
Online Platforms
Automotive Aftermarket
Products/Services
Replacement Parts
Replace the original stock
components which are worn out
in due course of time.
Accessories
Made for comfort, convenience,
performance, safety, or customization,
and are designed for an add-on.
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The total aftermarket has grown at a CAGR of 14% over 2013-2018. The vibrant automotive sector
drives the growth of the automotive aftermarket in India and is estimated to grow at INR75,000
crore by fiscal year 2020.
Automotive Aftermarket
Drive
Transmissi
on and
Steering,
21%
Engine
Compone
nts, 18%
Electricals,
18%
Suspensio
n and
Braking,
15%
Consuma
bles and
Miscellane
ous, 14% Cooling
Systems,
8%
Rubber
Compone
nts, 3%
Electronic
Compone
nts, 3%
Product-wise share in
aftermarket turnover (FY18)
Major Players by Segments:
Engine &
Engine Parts
Goetze, Rane Engine
Valves, Ucal Fuel Systems
etc.
Transmission &
steering parts
Sona Koyo Steering
Systems, Rane NSK
Steering Systems.
Suspension &
braking parts
Brakes India, Rane Brake
Lining, Jamma Auto & Jai
Parabolic and Gabriel
India.
Electrical Lucas TVS, Denso, Delco
Remy Electricals
Equipment Lumax, Premiere
Instruments & Controls
and Jay Bharat Maruti.
12
Automotive
Aftermarket
Overview and Trends
Online E-retailing
Government Regulations
Auto Components Export
13
Trends in Automotive Aftermarket: Online E-
retailing
At present, the automotive aftermarket sale channels is fronted by traditional stores and garages.
This majorly falls (53% in FY2018) under the unorganized sector.
Taking in consideration factors such as increase in the spending capacity, changing consumer
behaviour, penetration of technology, e-commerce and most importantly; need for an organized
market. Online e-retailing will soon be a business disruptor for this sector. It has already been
observed in western countries and developed markets.
2% 3%
3%
4%
4%
4%
0%
2%
4%
6%
2015 2016 2017 2018 2019* 2020*
US Online sales of auto parts and
accessories 2015-2020
Revenue from online sales of auto parts *Projected
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Trends in Automotive Aftermarket : Online E-
retailing
In 2014, the online auto aftermarket in India was estimated at around USD20 million (less than one
percent of the overall parts aftermarket at a retail level) and is expected to increase at a CAGR of
7%, valued at USD26 million in 2018 and is projected to reach USD30 million by 2020. There are huge
opportunities to explore in the B2B space due to speedy growth of organized and independent
workshops along with customers being positively disposed towards them.
Recent advancements in the online automobile aftermarket include:
Online autoparts marketplace
SparesHub.com has raised INR2
crore from Singapore-based
Anthill Scale Ventures, US-based
Esvee Technologies, Chennai
Angels and other high net-worth
individuals (HNIs).
Boodmo – an online
marketplace for auto
components (Ukrainan
company) – has ventured into
the Indian Markets. It aims to
organize the replacement parts
market and ma
