Guj tops two- wheeler spares market: ACMA

Gujarat topped the list for two wheeler components aftermarket beating Maharashtra and Tamil Nadu, according to a latest report from the Automotive Component Manufacturers' Association of India (ACMA).

The automotive component aftermarket basically refers to the spare parts or the replacement market. The two-wheeler autocomponents aftermarket in Gujarat is valued at Rs 1400 crore, closely followed by Maharashtra at Rs 1390 crore and Tamil Nadu at Rs 1300 crore. Amongst cities, Delhi had the highest market size for two-wheeler components with an aftermarket size of Rs 550 crore. ACMA found out that the average annual expenses on maintenance for two wheelers was Rs 2,650

 

The report said that two-wheelers contributed 49.66 per cent to the total vehicle components’ aftermarket. Three-wheelers at 2.54 per cent, passenger vehicles (PV) with 24.68 per cent and commercial vehicles (CVs) with 23.12 per cent share complete the pie for components’ aftermarket in 2010.

Enumerating the findings of the study, ACMA chairman for Committee on Consumer Affairs & After Market, Soumitra Bhattacharya, said, “This is the first time in India, that we have had an extensive primary researched database with statistical extrapolation of the vehicle parc as also replacement market for over 100 major components, for the Indian automotive aftermarket. The Committee has worked along with our research agency The Nielsen Company for the last six months to come out with a comprehensive report and a separate drill down electronic database."

The Indian aftermarket of on-road vehicles was valued at Rs 33,000 crore in 2010 with 25 per cent on account of servicing (labour charges) and the remaining majority from components, putting the total components aftermarket at around Rs 24,800 crore.

On the three-wheeler front, Maharashtra (Rs 120 crore), Gujarat (Rs 90 crore) and Kerala (Rs 85 crore) together constitute 47 per cent of the automotive components' aftermarket for three-wheelers. In passenger vehicles, Maharashtra (Rs 890 crore), Delhi (Rs 720 crore) and Gujarat (Rs 570 crore) contribute 36 per cent to the segment total.

Similarly, for commercial vehicles, leading states for components' aftermarket according to the survey are Maharashtra (Rs 730 crore), Gujarat (Rs 610 crore) and Andhra Pradesh (Rs 430 crore) together making up for 31 per cent of the segment total. Delhi at Rs 180 crore, Chennai at Rs 170 crore followed by Bangalore at Rs 150 crore were the leading contributors among surveyed cities.

Also, the report says that spending on vehicle maintenance during the initial two years is at around 35 per cent of the average spend during the peak spending period.

The peak spending period spans from the end of warranty till the vehicle is 13 years old. Interestingly, after 13 years of driving a vehicle, the average annual maintenance falls as most owners then aim to keep the vehicle in 'just road worthy' condition. This is the time, the ACMA report says, when the use of non-genuine or counterfeit parts goes up and regular service and maintenance cycles become much longer.