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Automotive Product Finder Magazine | E-commerce is emerging trend in aftermarket space
E-commerce is emerging trend in aftermarket space
ACMA Automechanika: Driving the growth of aftermarket
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Samvardhana Motherson Auto Systems (SMAS) is the global aftermarket arm of SMG - the $ 10.5 billion group with operations spread across 41 countries. The company’s vision is to become a globally preferred solutions provider in the independent aftermarket space, states Arijeet Gupta, COO, SMAS. The current business of SMAS is spread across various segments. In phase 1, the major focus of SMAS is on passenger vehicles (PV) & commercial vehicle (CV) segments. The company’s product range comprises of auto suspension systems, rear view mirrors, cables, brake parts, cabin air filters and car tracking device. Products are sold in the aftermarket under brand “Motherson Auto Parts”. In this interview with Rakesh Rao, Arijeet Gupta elaborates on the potential of aftermarket segment and the company’s plans to continuously expand its business.
How is the demand for Motherson Auto Parts in India?
Regular introduction of new products is fuelling the business growth for brand Motherson Auto Parts. In past two years, we have launched 714 SKUs spread across 7 major product categories. Our endeavour is to bring products and solutions in the aftermarket which differentiates the brand Motherson Auto Parts from rest.
What is your opinion about Indian auto aftermarket sector?
The Indian automotive aftermarket sector is a booming industry and is expected to grow at around 20 percent CAGR in passenger vehicles (PV) and 2W segments. With the car production projected to surpass 3 million cars annually in the next three years and 2W maintaining 20 million plus annual production, the aftermarket business will continue to grow significantly in the next 3 to 5 years. Further India is tipped to become the third largest auto components market in the world by 2025 which will open up opportunities not only for India but also for the global aftermarket.
How are changes such as BS VI emission norms, adoption of stringent safety regulations, electro mobility, etc affecting the dynamics of aftermarket business?
Impact of any changes at the vehicle manufacturer’s end has a long gestation period before affecting dynamics of the aftermarket business. In short to midterm, we see little impact of these changes in the aftermarket business. However, enforcement of the stringent rules and regulations in the aftermarket is a positive welcome sign as this will reduce the share of the unorganised and spurious components and help in the availability of auto components with certain quality standards. These changes will reshape the dynamics of aftermarket business in the long term.
What are some of the emerging trends in auto aftermarket sector?
One of recent emerging trends in the automotive sector is connected vehicles, be it a car, a bike or a commercial vehicle. With more OE fitments coming in, we see opportunity in this segment in aftermarket business. At present we have solutions related to car connectivity with our product called ROLLR MINI. It’s a car tracking device with added features, which a customer can track on his mobile. Another emerging trend in aftermarket space is e-commerce. We foresee this segment growing exponentially in coming years. Selling directly to end consumers and businesses through digital channels has also become more common and will likely be the norm in the coming years as consumers come to expect easy and reliable automotive parts availability.
What are your growth plans for SMAS in India?
We intend to expand our product offerings to the market. Target is to double up the current product portfolio spread across 7 categories to at least 10 in the next 12 months which will act as catalyst for our business growth. Today we have one of the largest range of the rear-view mirrors in the PV segment in the aftermarket. Further we intend to strengthen our product portfolio in 2W segments in near future. In parallel, we are open to explore options to grow business inorganically in line with the direction of our Group.
What are your plans for ACMA Automechanika 2019?
At Automechanika, we strive to connect with as many customers as we can and impart knowledge about the organization, brand and its products. Some of the fast moving, high quality products will be at display for the audience to see, along with the newly launched products. We recently added Premium brake pads for high end cars and premium RVMs to our inventory and the same will be displayed at Automechanika.
Samvardhana Motherson Auto Systems
Auto Aftermarket Sector
ACMA Automechanika 2019
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