There are about 35 million vehicles in India, of which 68% are over 3 years old. In addition, the poor conditions of India ’s roads and potholes make it easy to damage cars, which has created India ’s huge auto aftermarket service market.
In the past ten years, the Indian auto parts market has boomed, and the industrial output value has increased from US $ 26.5 billion in 2008 to US $ 51.2 billion in 2018. OICA predicts that the output value of the Indian auto parts industry will reach 100 billion US dollars by 2026.
Most parts are imported from China
According to a research report by market research agency Frost & Sullivan, in the eight years from 2014 to 2021, the compound annual growth rate of Indian auto parts and components will reach 12.4%, of which the growth rates of motor oil, wipers and brake pads are the most significant, and their increase The magnitude will be more than ten times that of Europe and the United States.
The auto parts imported from India are mainly divided into two categories. The first category is high-tech parts, mainly imported from Germany, the United States, Japan, and South Korea. The ones imported from China are mainly aftermarket parts. China is also the current Countries that export the most auto parts to India. The main export parts include piston rings, brake components, bimetal bearings, drive shafts, wheels, etc.
In 2018, China exported a total of US $ 4.3 billion worth of auto parts and components to India, a year-on-year increase of 10%.
There is great room for growth in the automotive market
The size of the Indian automotive market continues to expand and its importance in the global automotive market continues to grow. According to statistics from the International Automobile Manufacturers Association (OICA), a total of 95.63 million vehicles were produced worldwide in 2018, of which 5.17 million were produced by India, which ranks fourth in the world, behind China, the United States and Japan.
Among the world's top five auto producers, India has the highest growth rate of 8%. Affected by India's tax policy and global economic factors, India's auto sales fell slightly in 2018, reaching 3.99 million, but it is still the world's fourth largest car production and sales market. At present, India has only 22 vehicles per 1,000 people. Based on an average of 182 vehicles per 1,000 people worldwide, the Indian auto market has at least 8 times room for growth.
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