[gkoneti]

Dear All

this is an interesting report indeed. Two wheelers in India have a bigger (INR 10,000 Cr) aftermarket than Passenger cars (INR 6000 Cr) and India has a lot to grow interms of market size.

This report also talks about the margins of OEMs, OESs (Suppliers) and Generics industry.

Key Insights from the report

1. OEM companies (like Maruti, VW, Toyota, Hyundai who make genuine accessories) need to improve a lot interms of parts availability and distribution. FIAT, SKODA, NISSAN, Renault, even VW- are you listening? The problem only increases with more and more car companies launch products aimed at mass markets. The same applies to old cars which are no more in production. Ask me. I know the pain of sourcing parts for my GTX.

2. To lock in customers for a longer time, OEM companies should provide extended warranties so that the customers keep coming back to service centres.

3. Independant garages would have a very large play in the future. As the vintage of the cars goes up, the customers move to independant garages for quick solutions that are cheap. This makes me to think that in the coming years, there would be more and more branded independant garages. CARNATION, Castrol garages are one such example. Consolidation will kick in now.

I even got an idea. There is an ample scope for a company which can get into manufacture of parts for old cars (that are no more in production) and provide sales through online catalogue. Why only online? The parts need to be cheap and of good quality. Setting up of distribution network consumes lot of margins.

Read it here. http://cii.in/webCMS/Upload/AutoServ...et%20Final.pdf

Happy reading.