Despite the slowdown in the auto sector, the after-sales of auto accessories have created massive growth for MSMEs.
- By Puneet Arora
The Indian after-sales of automobile accessory market has created a revolution in the auto industry in the last couple of years. Gone are the days when car owners used to rely only on car manufacturers for their brand new or pre-owned cars for a premium range of accessories. With the onset of auto accessories after-market, the picture has totally changed and the impact is quite visible in the auto market. The impact of the after-sales of automobile accessory market is quite evident on small businesses and MSMEs. With the increasing inclination towards car customization, rising number of cars, growing demands of customers, and availability of imported cars, Indian car buyers have become very demanding and smart while aftermarket auto accessories players have also started offering advanced technology-driven car accessories. Such incredible technological advancement followed by the availability of imported accessories that are hard to find at car showrooms gave way to the rise of after-sales of automobile accessory market and created a great impact on big, small business and MSMEs.
In the last couple of years, many MSMEs and large businesses have seen an impressive growth rate in the domestic market. Earlier, the after-market was very restricted and customers used to rely only on car manufacturers for the accessories. But today they can reach out to the after-market to get what they want to amplify the overall aesthetics of their cars. The impact can be seen clearly through the rising number of startups in the auto sector where they are offering innovative auto accessories and solutions. As the MSME sector is considered as the most vibrant and innovative sector which can bring great growth for the Indian economy, the NPA rate is still way lesser than big corporates in the last couple of years.
Despite the slowdown in the auto sector, the after-sales of auto accessories have created massive growth for MSMEs. During the last three years, it is observed that millennial customers have moved towards a pre-owned car market where they are getting better deals at highly discounted prices. A sudden boom of the pre-owned car market and bend of customers towards second-hand cars led to the rise in the growth of after-sales of MSMEs because these young MSMEs are ready to offer quality service and are cost-effective at the same time. According to auto industry reports, the pre-owned car market has expanded to manifolds in the last couple of years. In fact, the sales have outshined the car brands and manufacturers to great margins. Most of the pre-owned car owners prefer to get accessories from the after-market due to lower prices, versatility and modification factors.
In the last couple of years, MSMEs and other businesses in the auto accessories sector have contributed to the economy by creating motor-clusters, exterior and interior accessories, suspension, and braking clusters. Due to the growing popularity of the aftermarket accessories, the innovation is leading to the growth of MSMEs which is eventually helping the overall economy since it is creating employment and revenue generation opportunities for the small businesses.
The modern customer wants the best range of accessories at a reasonable cost. Many after-market car accessories brands have started offering premium quality car accessories at highly attractive prices. However, there are some players or manufacturers who are offering low-quality parts and accessories which is resulting in a decrease in the revenue of organized players in the market. But, the after-market is doing its bit to make sure that customers don’t make such mistakes and choose the products wisely. Thus, the cost factor is the biggest factor that has put a great impact on the auto industry including big and small businesses. The young and enthusiastic approach of medium and small business to capture the market space by providing a quality product at an affordable price is ready to change the scenario of the after-sales market of Indian accessory industry.
The combined impact of all these factors lead to the rising after-sales in the auto accessories market and created a great impact on MSMEs and large businesses. In the coming years, the sector will keep flourishing and contribute in the growth of new businesses because modern customers are now totally relying on the after-market for all types of auto accessories including multi-media, wireless and security accessories in order to make their cars comfortable, secure and smart. Thus the time is ripe for the MSMEs and startups to make a name in the after-sales auto accessory market.
(Puneet Arora is the Founder & CEO at AutoFurnish. Views expressed are the author’s own.)