New Delhi: Indian auto component manufacturers have a considerable opportunity to enhance their exports, particularly within the independent aftermarket sector, as indicated by a report from EY-Parthenon.

The report emphasized that the global auto component market presents robust growth opportunities for Indian suppliers, with nations such as Brazil, Indonesia, Colombia, and various regions in Africa demonstrating significant potential.

It noted, “The global auto component market, particularly the independent aftermarket, offers a substantial opportunity for our industry.”

The study within the report categorizes the opportunity into two main market segments: mature markets with considerable consumption and developing markets with strategic trade advantages.

Among the mature markets, Indonesia is highlighted with a projected aftermarket value of USD 7,759 million by 2028. In this market, importers favor short lead times and adaptable order quantities, which Indian suppliers can effectively fulfill.

Latin American nations, especially Brazil and Colombia, also offer appealing opportunities. Brazil, characterized by a high number of vehicles on the road and an elevated average vehicle age, is anticipated to reach a substantial USD 12,091 million aftermarket size.

Colombia’s aftermarket is estimated at USD 1,999 million. These markets require organized supply chains through large distributors and wholesalers, an area where Indian exporters can enhance their presence.

Poland, with an expected aftermarket size of USD 4,769 million, is another example of a mature market, although the primary focus for Indian players remains on Brazil, Indonesia, and Colombia.

The report further indicated that developing markets also possess significant potential, particularly throughout Africa. North Africa is projected to have an aftermarket size of USD 3,415 million, South Africa USD 3,685 million, East Africa USD 521 million, and West Africa USD 596 million.

These regions show a strong preference for lower-priced parts in comparison to genuine parts, giving Indian manufacturers a competitive advantage. The increasing number of independent garages in both North and South Africa is driving up the demand for aftermarket components.

The report highlighted that consumers in East and West Africa are very sensitive to pricing and open to more affordable options, including parts that can be as much as 50 percent cheaper than those from China.

The UAE, boasting an aftermarket market valued at USD 888 million, serves as a crucial trade hub for the Gulf Cooperation Council (GCC) nations and Africa, providing logistical benefits and faster turnaround times.

Given these prospects, Indian auto component exporters have the opportunity to enter high-growth markets, utilize cost benefits, and enhance their global footprint, especially in Brazil, Indonesia, Colombia, and Africa.