What’s next for aftermarket in India?
As India’s aftermarket sector turnover returns to the growth path in FY 2022, we analyze where the segment is headed and some key factors expected to influence demand through the lens of VIO (Vehicles in Operation), VMT (Vehicle Miles Traveled), and the aftermarket ‘sweet spot’.
India’s automotive aftermarket industry returned to growth in fiscal year (FY) 2022 (April 2021–March 2022) after coming under pressure in the previous FY owing to the slowdown in the auto component and the overall automotive industry. In FY 2022, the aftermarket industry revenue grew at the fastest pace in five years, indicating a return to normalcy with the industry size surpassing pre-pandemic levels. In FY 2022, the turnover of the automotive aftermarket stood at INR74,203 crore (around USD9.80 billion), up 15% from INR64,524 crore (around USD8.52 billion) in FY 2021, according to an announcement by the Automotive Component Manufacturers Association of India (ACMA), India’s apex component industry body, on 22 August.