New Delhi [India], August 11 (ANI): Indian auto component manufacturers have a significant opportunity to expand their exports, particularly in the independent aftermarket segment, according to a report by EY-Parthenon.

The report highlighted that the global auto component market offers strong growth prospects for Indian suppliers, with countries like Brazil, Indonesia, Colombia, and various African regions showing significant potential.

It stated, 'The global auto component market, especially the independent aftermarket presents a large opportunity for our industry'.

The study in the report divides the opportunity into two broad market categories, mature markets with substantial consumption and developing markets with strategic trade advantages.

Among mature markets, Indonesia stands out with a projected aftermarket size of USD 7,759 million by 2028. Here, importers prefer short lead times and flexible order quantities, which Indian suppliers can meet effectively.

Latin American countries, particularly Brazil and Colombia, also present attractive prospects. Brazil, with a large number of vehicles on the road and a high average vehicle age, is expected to have a massive USD 12,091 million aftermarket size.

Colombia's aftermarket is projected at USD 1,999 million. These markets demand organised supply through large distributors and wholesalers, an area where Indian exporters can strengthen their presence.

Poland, with an expected USD 4,769 million aftermarket, is another example of a mature market, though the primary focus for Indian players remains Brazil, Indonesia, and Colombia.

The report also shared that the developing markets also hold immense promise, especially across Africa.

North Africa is projected to have an aftermarket size of USD 3,415 million, South Africa USD 3,685 million, East Africa USD 521 million, and West Africa USD 596 million.

These regions have a strong preference for lower-priced parts compared to genuine parts, providing Indian manufacturers an edge. The rising number of independent garages in North and South Africa further boosts demand for aftermarket components.

The report noted that customers in East and West Africa are highly price-sensitive and receptive to cheaper alternatives, including parts that are up to 50 per cent less expensive than Chinese-origin products.

The UAE, with an aftermarket size of USD 888 million, also plays a key role as a trade gateway for the Gulf Cooperation Council (GCC) countries and Africa, offering logistical advantages and quicker turnaround times.

With these opportunities, Indian auto component exporters can tap into high-growth markets, leverage cost advantages, and strengthen their global presence, particularly in Brazil, Indonesia, Colombia, and Africa. (ANI)