Indian Auto Component Makers Eye New Export Markets

Indian auto component makers see significant export opportunities in Latin American countries like Colombia and Brazil, as well as emerging markets like Africa. The independent aftermarket segment, which includes vehicle parts, accessories, and services not supplied by OEMs, is expected to drive growth. Mature markets like Indonesia and Poland, and emerging regions like Africa, offer promising opportunities for Indian manufacturers to establish a foothold and boost revenues.

Indian auto component manufacturers are poised to capitalize on substantial export opportunities, particularly in Latin American countries like Colombia and Brazil, as well as in emerging markets such as Africa. The independent aftermarket segment, which includes vehicle parts, accessories, and services not supplied by Original Equipment Manufacturers (OEMs), is expected to drive this growth [4].

A recent report by EY-Parthenon highlights that the global auto component market offers strong growth prospects for Indian suppliers. Among the key markets identified are Brazil, Indonesia, Colombia, and various African regions, each presenting significant potential [1][2][3]. The report categorizes these opportunities into mature markets with substantial consumption and developing markets with strategic trade advantages.

In mature markets, Indonesia stands out with a projected aftermarket size of USD 7,759 million by 2028. Here, importers prefer short lead times and flexible order quantities, which Indian suppliers can meet effectively [1][2][3]. Latin American countries, particularly Brazil and Colombia, also present attractive prospects. Brazil, with a large number of vehicles on the road and a high average vehicle age, is expected to have a massive USD 12,091 million aftermarket size. Colombia's aftermarket is projected at USD 1,999 million [1][2][3]. These markets demand organized supply through large distributors and wholesalers, an area where Indian exporters can strengthen their presence.

Poland, with an expected USD 4,769 million aftermarket, is another example of a mature market, though the primary focus for Indian players remains Brazil, Indonesia, and Colombia [1][2][3]. The report also shared that the developing markets, especially across Africa, hold immense promise. 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 [1][2][3].

These regions have a strong preference for lower-priced parts compared to genuine parts, providing Indian manufacturers an edge. The rising number of independent garages in North and South Africa further boosts demand for aftermarket components. The report noted that customers in East and West Africa are highly price-sensitive and receptive to cheaper alternatives, including parts that are up to 50 percent less expensive than Chinese-origin products [1][2][3]. The UAE, with an aftermarket size of USD 888 million, also plays a key role as a trade gateway for the Gulf Cooperation Council (GCC) countries and Africa, offering logistical advantages and quicker turnaround times [1][2][3].

With these opportunities, Indian auto component exporters can tap into high-growth markets, leverage cost advantages, and strengthen their global presence, particularly in Brazil, Indonesia, Colombia, and Africa [1][2][3].

References:

[1] https://www.thehindubusinessline.com/economy/indian-auto-component-makers-have-huge-export-opportunities-in-markets-of-brazil-colombia-poland-africa-report/article69918755.ece
[2] https://economictimes.indiatimes.com/industry/auto/auto-news/indian-auto-component-makers-have-huge-export-opportunities-in-markets-of-brazil-colombia-poland-africa-report/articleshow/123227307.cms
[3] https://m.economictimes.com/industry/auto/auto-news/indian-auto-component-makers-have-huge-export-opportunities-in-markets-of-brazil-colombia-poland-africa-report/articleshow/123227307.cms
[4] https://www.business-standard.com/industry/auto/brazil-poland-africa-export-opportunities-indian-auto-parts-makers-125081100513_1.html