Apex body of auto component industry said segment stood at Rs 56,098 crore in 2016-17.
New Delhi: The Indian automotive component aftermarket segment is expected to reach Rs 75,705 crore (USD 13 billion) by 2019-20, growing at a rate of 10.5 per cent, according to a study by ACMA.
The Automotive Component Manufacturers Association of India (ACMA), the apex body of the auto component industry, said the segment stood at Rs 56,098 crore (USD 8.4 billion) in 2016-17.
Out of the total, two- and three-wheeler segments accounted for Rs 12,038 crore, passenger cars around Rs 18,970 crore, commercial vehicles Rs 19,748 crore and tractors Rs 5,342 crore.
"The growth estimates are very much in line with the targets of the Automotive Mission Plans 2026. It is a reflection of India's large potential, not only for original equipment manufacturers, but for aftermarket players," ACMA Director General Vinnie Mehta told PTI.
He said that in 2016-17, the Indian automotive components aftermarket stood at Rs 56,098 crore (USD 8.4 billion) with a total vehicle parc of 228.7 million across the country.
"It is expected to reach Rs 75,705 crore (USD 13 billion) by 2019-20 exhibiting a CAGR of 10.5 per cent," Mehta added. Under the AMP 2026, the auto component aftermarket is estimated to reach a size of Rs 1.79-2 lakh crore.
As per the study, 'Indian Automotive Aftermarket; The Road Ahead' carried out in association with Frost & Sullivan, in the passenger vehicle segment, genuine OE (original equipment) spares accounted for around 40 per cent of the total component consumption.
The remaining 60 per cent is split evenly between IAM (independent aftermarket) branded parts and U-parts (parts from unorganised segment). The consumption of IAM-branded parts is highest in the CV segment, estimated at 50 per cent of the total consumption, while the tractor space exhibited the highest consumption of U-parts at 40 per cent, it said.
The penetration of counterfeit auto components has drastically reduced to 5 per cent in 2016-17, from 36 per cent in 2010-11. But their place has been taken up by U-parts, the study said.
Mehta said the lack of mandatory standard for aftermarket components, especially those related to safety, is a concern and ACMA has been working with the government to address this challenge.