Opportunities & Threats Of Indian Auto-Accessory Market
In the past decade, Indian auto-accessory has grown to manifolds. With a share of ups-and-downs, the industry has been growing at a rapid pace that is quite evident through the latest car accessories players in the market. In the last couple of years, the auto accessories demand has grown to a great extent. With the rising interest of car owners in modifying, uplifting their brand new cars, the surge in the rise of Indian auto-accessory market is quite evident. However, modern car manufacturers have also started offering premium accessories with their brand new cars. This new development has created a kind of threat to the Indian auto accessory market. At the same time, there are many opportunities to grab for the Indian auto-accessory market that will make them to go a long way.
Let’s put some light on the growing threats or factors that have already started impacting the auto market.
The first threat is the move of car manufacturers to offer pre-loaded accessories to customers. To gain more profits and to expand the customer base, modern car manufacturers are offering pre-loaded accessories to customers. However, they are charging more and offering only a few accessories that customers can easily get at lower prices in the auto accessories after-market.
Another threat is the growing needs of customers. It is quite challenging to meet customers’ growing aspirations and requirements that are driven by modern technology, global new launches etc. The modern customer is well-educated and does proper research before buying any car accessory. The kind of design, look, style and material they look for are totally different. Their requirements are quite versatile in nature. In fact, their expectations and demands give the auto accessory market to try something new or to bring innovation, still, they are a potential threat to the sales and growth of the Indian auto accessory market.
In fact, the ever-changing government rules and regulations create a lot of tension in the auto accessory market. Recently, the government has banned many car accessories including Sun Films due to safety parameters. The ban of one accessory creates a potential impact on other accessories as well. Thus, Government rules and regulations are unpredictable and auto accessories aftermarket has to bear the brunt anyways.
On the other hand, the auto accessory aftermarket has a lot of opportunities ahead to enhance their portfolio, reach and profits.
The first opportunity is the online market. In the last couple of years, customers from every industry are shifting to the online world. This results in the arrival of online auto accessories stores and prominent auto accessories players have started catering to online buyers. This is nothing short of a great opportunity to reach out to millions of potential customers on a daily basis without making much effort. By creating an excellent e-commerce website along with a rich catalogue of products, auto accessories players can easily enhance their sales and profits by reaching out to online customers.
The second potential opportunity is the pre-owned car market. With the arrival of the pre-owned car market, a lot of buyers are moving towards auto accessories after-market to revamp their old car into a new one. The pre-owned car market is booming in India and one can find out prominent certified dealers who are offering best cars with warranty and certification. This has resulted into the rise in the sales of pre-owned cars that has directly benefited the auto accessory market in many ways. There are few cars that car manufacturers don’t sell anymore and to get accessories for them, buyers reach out to car accessories aftermarket. In fact for new cars as well buyers are now moving to aftermarket to get a good range at reasonable prices.
Thirdly, modern car owners love to splurge on fancy, branded, high quality and premium range of car exterior as well as interior accessories. So, the biggest opportunity for the branded auto accessory car market is to bring a versatile range of products to meet the growing demands of millennials. It is important to read the customer’s mind and aspirations to transform them into profits. Modern car owners don’t mind spending on branded premium car accessories to enhance its comfort, style and security.
Thus, Indian car accessories after-market is no different from any other industry. Despite having threats, it has many opportunities to grab in order to enhance it’s profits and growth rate.
