The domestic automotive aftermarket is likely to decline by 10-15 per cent this year.
Last year, this market clocked $3.7 billion; it is expected to touch $9.4 billion by 2015. But this year will face a big blip, said R. Dinesh, Joint Managing Director, T.V. Sundram Iyengar & Sons.
Aftermarket sales have generally protected the auto industry even during a slowdown. But this year, it has not supported the industry as much, he said.
“The reasons being improved roads (despite all the criticism), only wear-and-tear parts are being replaced and the life of aggregates has gone up. With the supply chain tightening, people want to reduce costs,” explained Dinesh.
The aftermarket business is currently fragmented. But wholesalers and distributors will consolidate themselves, as semi-wholesalers get weeded out.
Retailers will also become stronger, said Dinesh, Chairman of Auto Serve, an annual event organised by the Confederation of Indian Industry focused on automotive care, maintenance, components and spare parts.
This year’s edition of Auto Serve will focus on improving profitability in the aftermarket trade and the latest technologies driving the industry. There will be a special emphasis on commercial vehicle operators badly hit by the slowdown, said Dinesh.
Auto Serve 2012 will be held from November 16-18 in Chennai.