Aftermarket

The domestic auto component aftermarket is expected to touch USD 14 billion mark by 2028 on the back of robust growth in vehicle parc in the country, a report commissioned by industry body ACMA in partnership with Ernst & Young said. As per the Global Automotive Aftermarket Research Report, the size of the 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, it added. "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. Besides, key ten international markets offer export opportunities of over USD 35 .

Auto component maker Anand Group on Wednesday said it has joined hands with South Korea's HL Group to provide a wide range of aftermarket components for the passenger vehicle segment in domestic and international markets. The companies have formed a joint venture (JV) -- HL Anand Automotive Parts Pvt Ltd -- under which two dedicated distribution centres will be set up in the next two years. The JV plans to add around 1,200 new SKUs (stock keeping units) in the next two years, Anand Group said in a statement. The new JV would help increase the size of the Indian firm's aftermarket business two-fold while building the Korean entity's presence in India, it noted. The JV will expand the aftermarket portfolio with products manufactured by Anand Group's existing JVs with HL Group's Mando Corporation, an automotive components leader based in South Korea, it added. The existing partnerships between the two entities are HL Mando Anand Automotive Pvt Ltd, which makes steering, brake, and .

Industry experts point out that this unique model could be a challenge or an opportunity for the company in the coming days as there is no successful model to follow

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The new initiative will bring vehicle owners, retailers, garages and insurers from a fragmented marketplace to one platform

Currently passenger car contributes around 30 per cent, which used to be 10 per cent five years ago