Here’s How The Auto Accessories Market Has Expedited In Last 5 Years
Indian Automobile Accessories market has seen a fair share of ups and down in past 5 years. After being in the dark zone for past 2-3 years the Indian auto-market is expected to enter double-digit growth curve in the coming years. The propel of new passenger car models, India emerging as a major hub for small car manufacturing and the rising per capita income are some of the key reasons for the growth of this market. However, this sudden upsurge and development of modern cars have severely impacted the business of car accessories aftermarket.
The Indian auto-components industry can be broadly bifurcated into the organised and unorganised sectors. The organised sector caters to the Original Equipment Manufacturers (OEMs) and consists of high-value precision instruments while the unorganised sector comprises low-valued products and caters mostly to the aftermarket category. The unorganised sector accounts for nearly 60% of the total cost car accessory market.
According to recent auto industry reports, Indian car accessories market has over $2B market in the country. Some of the major companies that are currently working in the car accessories market in India are Bosch, Kicker, Audison, Godrej, Marvin, Nertz, Dyna Quest, Alpine, Convex, JBL, Koyas, Minda, Pricol, Geers, Aviston, Active Total Security Systems, Ovion, Pioneer, Ryder, Kenwood, Latex Auto Industries, Panasonic, Worldtech, Saddle, Stanley, Maruti Udyog Ltd., Zicom Electronic, Hyundai Motor, Salvo, UVSS, Sony etc. These key players offer product innovation, technological advancement and maintaining quality standards. In the near future, these vendors are set to hike the enlargement of the car accessories market.
In the last couple of years, Indian auto accessories aftermarket has seen a lot of ups and downs and has been riding on a rollercoaster ride for quite some time now. But with the arrival of brand-new online auto accessories players such as Auto Furnish in 2014, the entire process of acquiring car and bike accessories got completely transformed in such a comfortable and hassle-free manner. They started working in a synchronised manner in order to bring stability and wider access to the best chain of accessories online as well as offline.
Tempt of Advanced Features
Consumers generally spend close to 3-4 per cent of the car value on car accessories. Continuous up-gradation of models along with advanced features in-car accessories enables fascination towards car accessories. These advanced car accessories offer a trendy as well as comfortable look to the car. In the Indian market, interior car accessories are more popular. The growing youth is providing a fillip to the market due to their perceptions and preferences. The interior accessories such as MP3 players, LED screens, speakers and stereo devices offers entertainment while long journeys. Seat covers are the most popular car accessories. Available in different colours and designs, it entirely enriches the attire of the car. The seat cover offers stylish look as well as protection to seats. Various types of security systems such as central lock, gear lock, GSM security, and power lock help to park the car securely.
Role of Government
The Government of India’s Automotive Mission Plan (AMP) 2006–2016 has ensured growth for this sector since long. The Indian Automobile industry is expected to achieve a turnover of $300 billion by the year 2026 and will grow at a rate of CAGR 15 per cent from its current revenue of $74 billion.
Government’s AMP has helped the automotive industry to grow and will benefit the Indian economy in the following ways: -
The auto-components industry accounts for 2.3 per cent of India’s Gross Domestic Product (GDP) and employs as many as 1.5 million people directly and indirectly each. A stable government framework increased purchasing power, large domestic market, and an ever-increasing development in infrastructure have made India a favourable destination for investment.
Burgeoning market of refurbished cars
The second-hand car market is one of the biggest opportunities for auto accessories aftermarket. Those who can’t afford to buy luxury cars are now investing in used cars and transforming them into a brand-new looking condition with the help of auto accessories aftermarket. Here, auto accessories play a paramount role as most of the pre-owned cars require a good amount of work before taking them to the roads. Thus, it is one of the biggest perks for auto accessories retailers to sell their accessories and earn profits.
Fraudulent- A major hindrance
Most of the modern car brands have launched their own accessories in order to maximize their profit. It has created a humongous storm in the auto accessories market as buyers are now inclined more towards OEM brands. However, some of the offline stores or retailers taking advantage and sell fake accessories on the name of prominent brands to the customers that is the biggest challenge in front of reputed auto accessories retailers.
The growth of the auto accessories market and the need to service vehicles in India, the aftermarket sector seems headed for good times. Over the next decade, the rapidly globalising world will lead to newer verticals and opportunities for auto-component manufacturers, who would need to adapt to the change via systematic research and development.
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