Global demand, tech to fuel disruption in auto parts mkt

The China-plus-one strategy is seen as playing out well for India's aftermarket sector

- Alisha Sachdev

India's $75-billion auto parts market is on the brink of disruption triggered by fast-evolving technologies, emergence as a global outsourcing hub, and increasing localization, as well as changing customer preferences in the domestic market, said Sunjay Kapur, president, Automotive Component Manufacturers Association of India (Acma).

The auto aftermarket business, the smallest contributor to the sector, which is primarily driven by supplies to original equipment manufacturers and exports, is benefiting significantly from these opportunities. In FY22, it comprised over $10 billion of total sales.

"I feel that a lot of the internal combustion engine business, which tier-I suppliers in the West are not interested in will come to India, because of the fact that tier-one suppliers in those markets are clear that they will only work with electric vehicle OEMs and platforms. Then, there is the aspect of traditional manufacturing that may not hold for long in the US or Europe, where companies want to outsource a lot of their forging and castings, for instance, and that opportunity will come to India. So, I feel, we are in a great position to build on the export opportunity," he said.