The growth outlook for the automotive aftermarket industry in India continues to be positive, driven by sustained increase in vehicle population and a shift towards higher-end vehicles, said speakers at the fifth edition of CII Auto Serve 2012 here on Friday.
The occasion was marked by the launch of a study by CII-McKinsey & Co on ‘Scaling the Indian automotive aftermarket: path to profitable growth.’ Over 100 exhibitors from different parts of the country are taking part in the three-day event.
Except for large automotive distributors, players across the aftermarket faced margin pressure in the last few years. This trend is likely to continue as most players in the Indian aftermarket are still sub-scale and will be at risk of margin decline due to pricing pressures as well as rising costs, the study said.
The study also asked the Indian players to extend the geographic coverage by entering top 100 districts, explore forward integration along the value chain and products and services segment.
R. Dinesh, CII Tamil Nadu State Council chairman, in his address said, the meeting was held at a crucial time when the automotive industry was currently witnessing a slowdown.
The conference was meant to enhance profitability in the automobile aftermarket business by showcasing state-of-the-art technologies and solutions.
Marc Nassif, Country head and Managing Director, Renault India, said, “India is one of the important markets when it comes to automobile. Indian market has tremendous scope and potential for the automobile industry and has witnessed stupendous growth in last couple of years.”
Delivering the inaugural address, Mike Nithavrianakis, British Deputy High Commissioner in Chennai said there existed huge scope for collaboration between India and UK in the automotive sector, particularly in the parts and aftermarket products.