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Brazil, Poland, Africa may offer export opportunities for auto parts makers
What is the aftermarket segment?
The independent aftermarket (IAM) refers to the market for vehicle parts, accessories, and services that are not supplied or controlled by the vehicle's original equipment manufacturers (OEMs). While OEM parts are those made by the company that built the vehicle, IAM parts are developed by third-party manufacturers and sold through independent distributors, and retailers.
Key features of the independent aftermarket:
Once a car is out of warranty, owners often turn to IAM suppliers for cheaper maintenance.
IAM parts offer multiple brands for the same component, unlike OEM channels.
IAM parts are usually more affordable than OEM parts.
Third-party manufacturers have large distribution networks that include spare parts stores, mechanic shops, and online sellers.
Why it matters
The aftermarket segment presents a vast export opportunity for Indian auto component manufacturers. Among mature markets, Indonesia has a projected aftermarket size of $7,759 million by 2028, the EY report said. Importers often seek quick and flexible deliveries, a demand Indian suppliers can meet effectively, thanks to their abundant resources.
In Latin America, Brazil and Colombia stand out as promising export destinations. With a high average vehicle age, Brazil's aftermarket size is expected to touch $12,091 million. Similarly, Colombia's may reach $1,999 million.
Poland's expected $4,769 million aftermarket size makes it a potential market for Indian manufacturers.
Emerging markets seem promising
Apart from the mature markets, even emerging regions such as Africa offer great promise. According to the report, North Africa is estimated to have an aftermarket size of $3,415 million. Meanwhile South Africa may reach $3,685 million, with East Africa at $521 million, and West Africa at $596 million.
Establishing dominance in these emerging markets could help Indian manufacturers secure a strong foothold and boost revenues, while rising demand for genuine yet affordable parts offers them a clear competitive edge.
With an aftermarket worth $888 million, the UAE serves as a key trade gateway to Gulf Cooperation Council nations and Africa, offering strategic logistical advantages and faster turnaround times.
What's next?
With US President Donald Trump imposing on India a 25 per cent tariff and an additional 25 per cent penalty for importing Russian oil, New Delhi is exploring ways to broaden its trade network.
While the Ministry of External Affairs and Indian politicians condemned the move as unjust, Prime Minister Narendra Modi vowed to "fiercely guard the livelihoods" of farmers, dairy workers, and fishermen.
The bottom line
The heightened tariffs come at a time when US trade with India was on the rise. While India is not heavily dependent on trade with the US, New Delhi is broadening its trade horizons. It is engaging with neighboring nations such as China and Russia to boost bilateral cooperation. At such a sensitive juncture, tapping new markets could give a strong fillip to various sectors.
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