The Top Car Parts Market Trends in India
As of 2020, the global automotive e-commerce market has reached $418 billion. Growing at an exponential rate of 14% every year, the aftermarket industry is rapidly flourishing. From changing business models to expanding the product portfolio, there are a plethora of reasons for the success of the auto parts market in India. Top online car spare parts seller brands like Boodmo.com doing pretty much good business in India.
Since it is wise to stay updated on the developments, check out some of the top trends in the car parts market along with some impacts and their causes below.
- Digital influence has a positive impact on auto parts sales
When we talk about digital influence, we eye at the growing number of advertisements on social and streaming media. Surely, they are one of the drivers of auto sales because we are being influenced by more than one platform today. But they are not the only two.
Blogs, social media influencers, forums and support groups are some digital channels that are affecting aftermarket sales. Customers rely on online forums to get peer opinion on their potential purchases. They gather experiences from their acquaintances before buying automobile parts.
Similarly, reviewers are yet another source of information for consumers. According to research, consumers are turning to digital influencers to “improve their purchasing decisions.” While reviews and ratings continue to gain importance, this is the best time for car parts suppliers and manufacturers to seize the day to improve their sales figure.
2. The tyre market is the largest one
India has one of the biggest tyre markets in the world. Given the population that is harboured within the geography, it is only fitting to have the fourth largest consumption.
Tyres are the highest selling car commodity in the world. From hatchbacks to SUVs, all kinds of vehicles have contributed to the tyre market’s growth. The sector is expected to grow at a CAGR of 4.8% in the next five years.
The figure may not be as surprising. The automotive aftermarket industry has evolved along with the increasing popularity of cars. So, the rise in tyre sales is rightly befitting.
3. Safety laws are improving the aftermarket sales
The industry is expanding and so are the laws that regulate it. Cars are mindless machines. Unless you are in a self-driving car, your car is only as smart as the one who drives it is.
The governments across the world have imposed stringent laws on car manufacturers and buyers. The auto parts need to be in excellent shape for them to get access to the streets.
In India, crash tests are taken more seriously than ever today. Airbags are yet another addition to every car while PUC is a mandatory certificate. So, people are investing in newer auto parts to abide by the standards. Besides, it wouldn’t be shocking if the aftermarket industry grows even further as sustainability becomes the new norm.
4. People have become smarter
From a seller’s point of view, it is unwise to continue to think that the consumers are dependent on the suppliers. They are far from being disposable. A study suggested that buyers are quick to visit the manufacturer’s website before buying their product. Safe to say, they don’t just hover over one e-commerce platform to buy spare parts. Consumers do their own research before finalising their purchase.
This is another reason why manufacturers are required to diversify their value chain over the internet. The key is information and service providers will need to be as active on the web as their buyers. This will be a major determining factor in consumers’ buying decisions.
5. Customers are moving towards e-commerce platforms to purchase car parts
Researchers predict that 20% to 30% of the global spare parts share will be enjoyed by the e-commerce platform. By 2035, more people will be buying their automobile accessories from online automotive shopping sites like Boodmo than ever. And while this is the global prediction, things won’t be different in India.
Thanks to the rise of the internet after the emergence of Jio in 2016, India has the world’s second largest internet user base now. We have 3.8 billion internet users, making us 12% of global internet users. Presently, one out of every three users shops online. And that includes people who rely on e-commerce platforms to buy spare parts for their cars.
What is interesting is that consumers don’t bother with the size of their purchase. No matter how bulky or heavy their product is, consumers will continue to buy online because it is convenient and less time-consuming for them. Even after seven years, ‘size doesn’t matter’ is one principle that remains unchanged among online car parts buyers because radiators continue to be one of the most popular online purchases today.
6. Demand for replacement has increased
Nowadays, cars have better life expectancy. Nearly all cars can last up to 15 years, sometimes, even more, if maintained properly. But the spare parts installed in the car originally may not be as reliable as the body of your vehicle. So, people are turning to replacements, which has naturally increased the sales of automotive parts.
But that is not the only reason. Today, consumers are embracing the concept of buying pre-owned cars. They find no shame in using an old car for a few years before replacing it with another model. Therefore, there is a significant rise in the used car market, too.
Purchases like this demand replacements. Regardless of how low on maintenance the used cars are, they require spare parts that comply with the current standards. This has led to the rise of auto parts supplier, Boodmo. Their reliability is rapidly gaining them a loyal customer base. From price guarantee to long warranties, they offer genuine products that are compatible with your car. With a catalogue ranging from floor mats to oil filters, Boodmo takes care of all your auto needs and more.