Others: Auto component firms in India

Auto component firms eye aftermarket in India, abroad

With no recovery in sight, auto component units are devising new strategies to tide over the severe downturn. Apart from entering aerospace, prosthetics and power segments, they are trying to tap aftermarket in India and abroad.

Another trend one hears of is that of OEs urging vendors to develop new products in view of changing Euro emission norms. "With emission norms changing and given the fact that the Obama administration is keen on promoting clean technology, OEs have postponed their requirement by about a year. Instead of June 2010, we are now working to meet the 2011 timelines," top official of a Rs 122 crore company in Chennai told.

US aftermarket is a huge opportunity, which is being presented to Indian auto players once again. Even if they look at a $ 2.5-3 billion aftermarket volume in five years time, it would benefit them tremendously. Wipers, starter motors and alternators are products that Indian companies can evaluate through cost-competitive strategies.

The aftermarket service segment is one sector that is not recession-prone and it is the ideal time for the country to consider investing in getting more trained skill force to handle sophisticated spare parts. With customers preferring genuine parts, the demand for branded parts have increased substantially.

January 20, 2009
Source:Economic Times
URL:http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Auto_Components/Auto_component_firms_eye_aftermarket_in_India_abroad/articleshow/4037407.cms?curpg=2