The changing Aftermarket Industry and how Indian Automotive

The changing Aftermarket Industry and how Indian Automotive ancillaries can
benefit from arising opportunities
Prepared for:
Singex
Prepared by:
Spire Research and Consulting
Date:
28th September 2019
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Agenda

Topic

1 Automotive Market

1a

Overview

1b

Segmentation of four wheelers

1c

Tire Industry-Overview

1d

Tire Industry-Key Players

2 Automotive Aftermarket

2a

Overview & Trends

2b

Online E-retailing

2c

Safety & Security

2d

Auto Components Export

3 Summary

2

Automotive Market – Overview
3

Automobile Industry in India – Overview

The automobile industry in India is the world’s fourth largest vehicle market. In 2018 India was the world's 4th largest manufacturer of cars and 7th largest manufacturer of commercial vehicles.
Indian automotive industry (including component manufacturing) is expected to reach INR16-18 trillion (USD251-283 billion) by 2026.

60
2
40

Size of the market FY19
2.5 2.2 2

3
2.6
2

In Billions in Millions

51 20 35 39 39 44 1

0
2014-2015

2015-2016

2016-2017

2017-2018

0
2018-2019

Overall Revenue of Auto Components

Number of Automobiles Sold in India

Source: SIAM Society of Indian Automobiles.

4

Automobile Industry in India – Overview
Domestic sales are dominated by large number of two wheeler vehicles. In 2017, India surpassed China to become the world’s biggest market for two wheelers. A total of 21.1 million units were sold last year, which comes down to 58,000 units every day.
Automobile Domestic Sales Trends FY19
4% 3% 13%
81%

Two Wheelers Commercial Vehicles

Passenger Vehicles Three Wheelers

Source: SIAM Society of Indian Automobiles.

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Automobile Industry in India – Segmentation of four wheelers
Indian Market has been known for the market for hatchbacks. Even the government has implemented rules to allow the development of cars under 4 metres, as they attract lesser duty and other taxes. Petrol engines smaller than 1.2litre and diesel engines that are under 1500cc, have a lesser excise duty. This helps to increase fuel efficiency and also reduce pollution.

Automobile Domestic Sales Trends 2018

24%

Total Number of Commercial

Vehicles Sold in 2018

50%

1,007,319

26%

Hatchbacks

SUV's and MUV's

Sedans

6

Tire Industry: Overview
Key Figures for FY2018: No. of Tyre Companies in India: 41 No of Tyre Plants in India: 62 Industry Turnover 2018-19 (est.): INR63000 crore (USD9 Bn) Exports 2018-19 (est.): INR12890 crore (USD1.8 Bn)

Distribution across various channels

100% 80% 60% 40% 20% 0%

62%

70%

38%
2011
Aftermarket

30%
2018
OEM+exports

Distribution of exports/sales of

Tyres manufactured in India FY18

Global

Indian

14%

28%

58%

10% 13%

22%

55%

Truck & Bus Passenger Vehicle (PV) 2/3-Wheeler

Truck & Bus Passenger Vehicle (PV) 2/3-Wheeler Others
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Tire Industry: Key Players and Plant Locations

• Limda, Gujrat • Perambra, Kerala • Kalamessey, Kerela • Orgadam, Tamilndadu • Chittor, Andhra Pradesh*

• Kankroli, Rajasthan • Banmore, Madhya Pradesh • Mysore (2), Karnataka • Sriperumbudur, Tamil Nadu • Haridwar, Uttrakhand

• Balasore, Orissa

• SIPCOT Thiruvallur, Tamil Nadu

• Dhar, Madhya Pradesh • Pune, Maharashtra
• Mumbai, Maharashtra • Halol, Gujarat • Ambarnath, Maharashtra • Nasik, Maharashtra • Nagpur, Maharashtra • Sriperumbudur, Tamil Nadu*

• Chennai, Tamil Nadu • Arkonam, Tamil Nadu • Trichy, Tamil Nadu • Puducherry • Medak, Telangana • Poda, Goa • Kottayam, Kerala • Baruch, Gujarat*
• Bahadurgarh, Haryana

• Modipuram, Uttar Pradesh

• Rudrapur, Uttarakhand • Madurai, Tamil Nadu

• Baliabhgarh, Haryana • Aurangabad, Maharashtra
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Overview and Trends

Automotive Aftermarket

Online E-retailing Government Regulations

Auto Components Export

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Automotive Aftermarket

The Automotive Aftermarket refers to the manufacturing, retailing and installation of all vehicle parts after the sale by the OEM (Original Equipment Manufacturer). The automotive aftermarket is broadly divided into three sectors:

Automobile Aftermarket FY19

1% 1%

Organized Single Brand Outlet

46% 52%

Unorganized MBOs/ Workshops
Organized Multi Brand Outlets

Online Platforms

The post warranty vehicle (>4 years) service market was mainly captured by small independent garages i.e. the unorganized sector because of the huge cost differences (of after warranty services) between authorized and local garages.

Automotive Aftermarket
Products/Services

Replacement Parts

Accessories

Replace the original stock components which are worn out
in due course of time.

Made for comfort, convenience, performance, safety, or customization,
and are designed for an add-on.

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