Automotive aftermarket on growth spurt
Automotive aftermarket on growth spurt. In 2020, the US captured 16 billion in the market through its e-commerce website. The Indian and Chinese markets were meeting the growing world-class demand with their affordable products. After 2020 the pandemic came and after the pandemic, today the market wants to see the growing boom of the automotive industry.
The boom is rarely seen in India, but at the global level, the boom is breaking records. It is believed that this boom is due to the current purchase and sale of existing vehicles and their use. Sevens Automotives also manufactures components for Two Wheelers Vehicles, the main ones being the Control Cable Assembly, Indicator Assembly and Automotive Filter Assembly.
The Automotive Aftermarket growing boom in the auto parts sector is mainly due to the maintenance, service and repair of used vehicles. People’s budget is more on old vehicles than on new vehicles. The main reason for this is the slowdown in the global economy. People are finding it better to use old things instead of new ones. With less money, you are meeting your expenses and your needs.
In order to fulfil their needs, people are using everything that, although not real, gives the impression of fulfilling all the qualities of the real thing. After the epidemic, people started adopting the online market. People want to avoid the crowd. The online market has also tightened its gear to meet the needs of the people.
Online market is giving many types of facilities to the people. Saving people’s time. Saving people’s money. People are saving fuel. It seems people are now buying more from online platforms. Serving such new customers will require more aftermarket players.
Replacement of Vehicles
People want to use their old vehicles for a longer period of time through repair and replacement of their vehicles rather than buying a new one. While electric vehicles have paved a way for the aftermarket, it is not as positive for OEMs as it should be. New models are being manufactured every day in the manufacture of vehicles, but people are more like to drive old vehicles.
While the demand for auto components has increased significantly in the global markets, the demand for auto components is decreasing in the Indian markets. The automotive aftermarket segment in the global market has seen a growth of 76% in 2021/22. Whereas in the Indian market this jump is quite negligible.
Overall, the automotive aftermarket is ushering in a new boom. Even though its impact in India is not that much. But the influence of Indian and Chinese automotive components on the world stage is enormous. People are using it with open heart. The demand for automotive components is increasing more than the requirement.
The Indian aftermarket is rapidly adapting itself to innovative technologies. In which the major logistics service is also playing its role. Due to which the players of the automotive aftermarket have got a boon in operating the customer.
How to Automotive aftermarket on growth
First of all the credit system has to be shut down. The secondary automotive aftermarket has to be strengthened. There should be an abundance of quality goods in the market. Aftermarket competitiveness has to be judged not by money but by quality.
People have to be made aware about the quality of the product, especially the end user. The scale of dealers, distributors and retailers has to be decided. Aftermarket executives will have to reduce target pressure along with facilities. There should be equality in the MRP of the product.
Strict measures have to be taken to prevent product duplication. The banking system will have to be strengthened, which will reduce the risk of credit and fund sinking. The tax system needs to be more transparent and strengthened. By adopting all these factors, the Indian automotive after market can be on the path of development at a faster pace.