Mumbai: The global market for replacement parts, maintenance and accessories for light vehicles is estimated to be worth over $778 billion (at retail prices in 2006 for parts and labour included) and is predicted to enjoy double-digit growth.
This is according to a report, 'Five factors that will shape the future of the global automotive aftermarket', published by London-based independent market analyst, Datamonitor. According to the firm, growth of the light vehicle aftermarket will stem from vigorous increases in developing markets such as Central and Eastern Europe, Africa and Middle East (MEA), Latin America and Asia, excluding Japan.
The value of these developing markets is expected to grow by 47 per cent or 6.6 per cent per year from 2006-2011. By contrast, the developed markets (Western Europe, United States, Canada, Japan, Australia and New Zealand), are forecast to increase by 4.1 per cent or less than 1 per cent per year.
According to Datamonitor, of the various factors fuelling global growth in the light vehicle aftermarket, one of the most significant is the increase in the number of cars on the road (car parc).
"Car parc growth is the key trend which fuels the value of the aftermarket globally," says Richard Carteau, aftermarket analyst with Datamonitor and author of the study. "The stellar economic growth in countries such as India and China therefore is leading to major growth in new car registrations and in turn, to the number of vehicles on the road."
The report also points out other factors, which have a strong regional impact. In mature markets, for example, more technical and better quality parts require less frequent replacement, but at a higher average cost. In developing countries however, fierce competition between manufacturers guarantees low manufacturing costs and offsets the upward trend in prices.