'Auto parts aftermarket industry to touch Rs 37K cr by 2015'
The report 'Scaling the Indian automotive aftermarket: path to profitable growth' was released at the 'Auto Serve' conference organised by Confederation of Indian Industry here.
This industry encompasses all products and services purchased for light, medium and heavy duty vehicles after the original sale including replacement parts, accessories, lubricants, appearance products, tires, collision repairs as well as the tools and equipment necessary to make the repair.
"Currently, the total size of the automotive parts aftermarket is estimated at approximately Rs 28,000 crore, while service market is pegged at Rs 10,000 crore. The parts aftermarket is expected to grow at 11 per cent till 2015 to reach Rs 37,000 crore," the report said.
The Indian after market was dominated by the two-wheeler industry at Rs 14,000 crore (49 per cent), followed by cars at Rs 7,000 crore (26 per cent) and the remaining commercial vehicles.
"The growth in the Indian aftermarket will primarily be driven by increasing vehicle parc and shift in the mix of vehicles towards high-end variants," it said.
However, the study cautioned that the return on capital expenditure (ROCE) for companies in the industry was expected to be "under pressure" mainly due to "rising operating costs, higher capital lock-in period and other fixed capital".
Stating that the after market industry was largely "fragmented" in India, the report said it was
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