Organised service stations to gain ground by 2017: ACMA

It is expected that by 2017 market share of OEM authorised network of service stations will grow to around 25-30% from existing 15-25%: ACMA.

Written by Agencies | New Delhi | Published:January 4, 2012 5:03 pm

The Automotive Component Manufacturers Association of India (ACMA) today said the market share of organised service centres would go up considerably in the next five years on the back of growing vehicle penetration in the top Indian cities. As per the findings of a study ‘Indian Automotive

Aftermarket – Emerging Trends in Distribution,Servicing and Future Regulations’,the market share of original equipment manufacturer (OEM) authorised service stations and multi-brand organised service chains would grow in the next five years.

“… It is expected that by 2017 the market share of OEM authorised network of service stations will grow to around 25-30 per cent from existing 15-25 per cent,” ACMA Chairman for Committee on Consumer Affairs and Aftermarket Soumitra Bhattacharya told reporters here. According to study,unveiled today by ACMA,the share of multi-brand organised service chains would go up to 5-10 per cent from present 1-2 per cent.

“Semi-organised service centres accounting for 10-20 per cent of the market today will account for 20-30 per cent in 2017,while share of unorganised garages will drop from the current 60-70 per cent to 45-55 per cent,” he said. As per the findings of the study,the total aftermarket around the world is expected to cross $1 trillion by 2012,growing at over 5 per cent.

The current size of components business in the Indian automotive aftermarket is estimated at Rs 24,800 crore. Two wheelers segment with 49.7 per cent leads the market followed by other segments,the findings of the study revealed. According to the study,36 per cent of parts sold in the aftermarket are counterfeit and fake. Commenting on the challenges before the auto component aftermarket in the country,ACMA President Arvind Kapur said a process of accreditation needs to be devised for aftermarket players in each product/component category.

He also emphasised on the need for modern logistics management in the aftermarket value chain.

“Distributors,retailers,stocking garages will need training and education on scientific inventory management,deployment of IT systems and professional management,” he added.

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