Revving Global Potential: Indian Auto Components Eye Expanding Exports

Indian auto component manufacturers have a promising pathway for boosting exports, particularly within the independent aftermarket sector. A comprehensive report by EY-Parthenon outlines bright prospects for these manufacturers in global markets, pinpointing nations like Brazil, Indonesia, Colombia, and several African regions as high-potential zones.

The report underscores that the global auto component sector, especially the independent aftermarket, heralds a monumental opportunity for Indian firms. It categorizes the opportunity into two market segments: mature markets ripe with consumption and developing markets offering strategic trade benefits.

Among mature markets, Indonesia is notable, with a projected aftermarket volume of USD 7,759 million by 2028. Here, Indian suppliers effectively meet demands for swift delivery and adaptable order sizes. Brazil and Colombia in Latin America are also ripe with potential; Brazil's large vehicle pool and advancing vehicle age are predicted to forge a USD 12,091 million aftermarket sector.

Colombia's aftermarket, projected at USD 1,999 million, necessitates organized supply networks, presenting another opportunity for Indian exporters. Although mature, Poland's aftermarket prospects of USD 4,769 million are overshadowed by more promising prospects in Brazil, Indonesia, and Colombia.

The study also highlights burgeoning opportunities in developing markets, notably across Africa. North Africa is anticipated to reach an aftermarket size of USD 3,415 million, with South Africa, East Africa, and West Africa following suit. These regions lean towards lower-priced components, granting Indian manufacturers a competitive advantage.

Growing numbers of independent garages in regions like North and South Africa increase demand for affordable aftermarket parts. East and West African consumers are particularly cost-conscious and open to affordable options, often at half the price of Chinese-origin parts.

The UAE, poised with an aftermarket size of USD 888 million, emerges as a key trading hub for GCC nations and Africa, offering logistical benefits and faster turnaround. With ample opportunities at their doorstep, Indian auto component manufacturers are situated to tap into burgeoning markets, capitalize on cost benefits, and solidify their international footprint, especially across Brazil, Indonesia, Colombia, and Africa.

(With inputs from agencies.)