The automotive after-market in India, for the first time, is expected to report a contraction, this fiscal, by 10-15 per cent from the present $3.7 billion.
R Dinesh, chairman, Auto Serve 2012, and joint managing director, TV Sundram Iyengar & Sons Ltd, said a major factor for the contraction was the tightening of supply chain.
“Whenever the automotive industry reports a contraction, the after-market will show a positive sign. This is happening for the first time in history, and the industry is expected to contract 10-15 per cent,” he said.
He added, however, the future looked optimistic, led by the CV industry's growth, and the industry would touch around $9.4 billion by 2015.
Meanwhile, the Confederation of Indian Industry (CII) is organising Auto Serve 2012, starting November 16 at Chennai. The conference will focus on improving profitability of owners, dealers, retail merchants and mechanics, and it is to create more awareness of technology, and on the recent trends globally. For instance, one of the main topics would be on the emergence of the spare parts retail trade, said Dinesh.
The after-market in India is at present fragmented, but it is likely to move towards consolidation.
The three-day conference-cum-exhibition will also focus on regulatory issues, inefficiency, and who controls the networks and others.
