The increase in Vehicle Parc leads To growth of Aftermarket in India By CIOTechOutlook Team

The increase in Vehicle Parc leads To growth of Aftermarket in India

CIOTechOutlook Team | Tuesday, 30 January 2024, 04:18 IST

The homegrown auto part secondary selling is supposed to contact USD 14 billion imprint by 2028 on the rear of hearty development in vehicle parc in the country, a report charged by industry body ACMA in organization with Ernst and Youthful said. According to the Worldwide Car Secondary selling Exploration Report, the size of the car post-retail remained at USD 10 billion of every 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, it added, as per economic times.

"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," ACMA President Shradha Suri Marwah said in a statement.

Furthermore, key ten worldwide business sectors offer commodity chances of over USD 35 billion, she noted. The engine, suspension, braking, and transmission parts, as well as rubber components, cooling systems, and filters, were the seven product categories that comprised the report. Tires and consumables like batteries, coolants, and greases are not shrouded in the review.

According to the report, the bike and traveler vehicle parcs are projected to show hearty development from 257 to 365 million units and from around 47 to north of 72 million units separately by 2028. The used vehicles deals are projected to develop around 17.5 percent CAGR until FY 28, fuelled by coordinated organizations and online stages, it expressed.