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MOTORINDIA
l
September 2012
115
nant aftermarkets in the US and
Europe, I am confident the Indian
auto component industry will focus
attention on these and will carve a
niche for itself.”
A concept note on opportunities
and challenges in the global after-
market tiled ‘The Automotive Af-
termarket: A Bright Spot in a Sea of
Change’, by Frost & Sullivan, the
Knowledge Partner of the confer-
ence, was also released on the oc-
casion.
Some of the salient points on the
behaviour of mature and emerging
markets highlighted in the paper
included:
• The size of the global automo-
tive aftermarket is around $400 bil-
lion. In mature automotive markets,
the aftermarket generates a big slice
of the profit-pie while in emerging
markets the aftermarket is a minor
contributor.
• Large aftermarket players, in-
cluding multi-brand service and
specialty chains, dominate mature
markets
• In mature automotive aftermar-
kets strong service brands and parts
brands have visible footprint, of-
fering differentiated services and
product choices to the end user. In
emerging markets strong aftermar-
ket brands, differentiated on quali-
ty-price matrix, do not exist.
• In markets like Western Eu-
rope and the US a strong regulatory
mechanism ensures level playing
field for all the industry players thus
encouraging competition and offer-
ing many choices to the end user,
whereas, the regulatory framework
for aftermarket is weaker in emerg-
ing markets.
• Efficient and well-managed sup-
ply chain & logistics have contrib-
uted to aftermarket development
in mature markets. On the other
hand, emerging markets are yet to
achieve efficiency in warehousing,
transportation, inventory manage-
ment and related services.
• Fake and counterfeit parts are
another major challenge for af-
termarket players in the emerging
economies, especially China and
India. Mature markets, while not
entirely free from fake and coun-
terfeit parts, are not adversely im-
pacted by this menace to the same
extent owing to legal framework,
industry activism and maturing of
markets.
Mr. Josef Frank, Senior Advisor, Aftermarket CLEPA aisbl, addressing the
gathering
aftermarket
Several eminent international
speakers from South-East Asia,
Europe, the US and South Af-
rica gave detailed insights into
various markets with key chal-
lenges and opportunities, key
distribution channels and the
emerging trends.
w