India Two-Wheeler Aftermarket Services Industry Outlook to 2027

Driven by growing sales of two-wheelers and shifting consumer preference towards availing private transportation medium

The publication titled ‘India Two-Wheeler Aftermarket Services Industry Outlook to 2027: Driven by growing sales of two-wheelers and shifting consumer preference towards availing private transportation medium” provides a comprehensive analysis of the aftermarket services industry by analyzing historical statistics and corresponding developments in the aftermarket industry. The report covers various aspects including aftermarket services industry market size on the basis of revenue and number of vehicles serviced, overview and genesis, ecosystem, two-wheeler sales, two-wheeler parc, analysis of different workshops (organized multi-brand, unorganized multi-brand/local garages and OEMs), growth trends and developments, key decision making parameters for two-wheeler servicing, Porter 5 Forces Analysis, government initiatives, impact of COVID-19, and risk factors governing the future outlook of industry. Insights on competitive landscape of aftermarket services industry and cross comparison between major players operating in the ecosystem namely, OEMs, organized multi-brand and spare parts’ manufacturers is also covered in the report on the basis of operational and financial parameters such as company profile, operational model, USP, business model, business strategy, services offered, sourcing of spare parts, pricing packages, pain points, market share, recent developments, sales volume, total income, net profit margin, inventory turnover ratio, total expenses, net profit and sale of spare parts. Further, the report covers overview of the spare parts industry on the basis of market size (revenue generated), classification of spare parts type (engine components, suspension/braking, transmission, electronics, body & chassis, cooling systems and others) and cross comparison of spare parts’ manufacturers on the basis of operational and financial parameters (overview, USP, key customers, products, location of major manufacturing plants, total income, profit after tax, net profit margin, inventory turnover ratio, and debtors turnover ratio).

The report also focuses on the India Two-Wheeler Aftermarket Services Industry Segmentation by Type of Vehicle (Motorcycles and Scooters); By Age of Two-Wheeler (0-2 years, 2-4 years, 4-6 years, 6-8 years and 8 years & above); By Region (North, South, East and West); By Service Split (Non-Crash Repair, Crash Repair and Body Care); By Type of Workshop (Organized & Unorganized Multi-Brand and OEM); By Type of Multi-Brand Outlet (Organized Outlet and Unorganized Outlet); By Brand (Hero MotoCorp, Honda, TVS, Bajaj Auto, Suzuki and Others), By Electric Two-Wheeler Brand (Hero Electric, Okinawa, Ather, Ampere, Pure EV and Others); By Type of Split for Aftermarket Spare Parts and Consumables (Spare Parts and Consumables); By Expenditure Category (Services, Spare Parts and Consumables) and By Booking Mode (Online and Offline). India Two-Wheeler Aftermarket Services Industry report concludes with projections for the future of the industry including revenue and number of vehicles serviced by 2027, industry speaks and analysts’ take on the future highlighting the major opportunities.

India Two-Wheeler Aftermarket Services Industry Market Overview and Size

India two-wheeler aftermarket services industry expanded with a CAGR of ~7.9% in between FY’17 and FY’22 on the basis of revenue generated. While the sales of two-wheeler contracted at a CAGR of ~5.2% in between FY’17 and FY’22 due to hike in fuel prices and negative impact of COVID imposed lockdown, aftermarket industry on the other hand recorded a 6.9% expansion in between FY’17 and FY’22 on the basis of units of vehicle serviced. The expansion is attributed to the online multi-brand players such as Hoopy and GarageWorks extending doorstep aftermarket services even during nationwide lockdown. Increased awareness on health and hygiene brought about by the advent of COVID-19 is a major determinant for the shift in consumer’s preference in availing private transportation medium rather than utilizing public transport. The shifting preference and integration of electric two-wheeler vehicles in the industry coupled with surging per capita disposable income, served as major catalysts for the growth in two-wheeler aftermarket services industry. Enhancement of digital presence has become one of the major determinant for expanding the customer base of organized multi-brand and OEM players followed by the aftermath of COVID-19. Doorstep services model offered by organized multi-brand dealers such as Hoopy and Garage Works gained traction among consumers during this period. Local garages were negatively impacted due to COVID-19 as capital of these players were wiped off permanently attributed to the closure of business during pandemic. As a result of which various daily wage workers from local garages have migrated back to their natives thereby, reducing the accessibility of local garages in comparison to the pre-pandemic time period. This has positively affected the scope for organized multi-brand players looking to enter the space.

India Two-Wheeler Aftermarket Services Industry Market Segmentation

• By Type of Vehicle (Motorcycles and Scooters): Revenue generated from services of motorcycles contributed to the highest share to the aftermarket services industry in FY’22, as motorcycles are preferred medium for consumers travelling long distance for its lower fuel consumption capability as compared to scooters.
• By Region (North, South, East and West): The southern region accounted for the highest share in FY’22 on the basis of revenue generated from aftermarket services of two-wheelers as most of the OEMs and organized multi-brand workshops are clustered around this region due to the high demand of two-wheelers. Northern and southern region cumulatively contributed to majority of the market share on the basis of revenue from aftermarket services in FY’22 attributed to rapid urbanization in these regions for better employment opportunity which lead to improved financial stability of consumers purchasing two-wheelers.
• By Age of Two-Wheeler (0-2 years, 2-4 years, 4-6 years, 6-8 years and 8 years & above): Revenue generated from aftermarket service of two-wheelers aged between 2-4 years accounted for the highest share in FY’22. The highest share is attributed to the free services offered to the customers by the OEMs during the warranty period post buying of a new two-wheeler, wherein consumers are more prone to get their vehicle serviced as 70% of the service fee is covered.
• By Type of Workshop (Organized & Unorganized Multi-Brand Workshop and OEM): Revenue generated from aftermarket services of two-wheelers through organized & multi-brand workshops accounted for the highest share in FY’22 as compared to OEM workshops. Post warranty period of 3-5 years for two-wheelers, OEM loses most of its customer base. Only a small portion of the revenue generated from aftermarket services were through OEMs in FY’22 as compared to multi-brand outlets.
• By Type of Multi-Brand Outlet (Unorganized Outlet and Organized Outlet): Revenue generated from two-wheeler aftermarket services through unorganized outlet and local garages in FY’22 accounted for the highest share as compared to organized multi-brand outlet. Consumers prefer servicing their two-wheeler from local garages due to its ease of access and general availability coupled with lower service fee they charge.
• By Service Split (Non-Crash Repair, Crash Repair and Body Care): Non-crash repair accounted for the highest share on the basis of revenue generated from aftermarket services of two-wheeler in FY’22.
• By Brand (Hero, Honda, Bajaj Auto, TVS, Suzuki and Others): Revenue generated from aftermarket services of all two-wheeler models of Hero MotoCorp brand accounted for the highest share in FY’22. Hero was followed by Honda and Bajaj in terms of revenue generated from aftermarket services of all two-wheeler models from these brands in FY’22. Other categories of brands in India include TVS, Suzuki, and Ampere etc.
• By Electric Two-Wheeler Brand (Hero Electric, Okinawa, Ather, Ampere, Pure EV and Others): Hero Electric accounted for the highest market share among all the brands on the basis of revenue generated from aftermarket services in FY’22. Hero Electric was followed by Okinawa and Ather in terms of revenue generated from aftermarket services of all two-wheeler models sold by these brands in FY’22. Revenue generated from aftermarket services of electric two-wheeler models accounted for only a small portion of the overall aftermarket services industry.
• By Type of Split for Aftermarket Spare Parts and Consumables (Spare Parts and Consumables): Revenue generated from spare parts required for aftermarket two-wheeler services accounted for the highest share in FY’22. Spare parts’ consist of engine parts, clutch and suspension among others which are heavily demanded by the consumers during periodic or general maintenance of vehicle due to possible cause of wear and tear.
• By Booking Mode (Offline and Online): Offline medium remained the preferred choice of consumers in India for booking slots for two-wheeler servicing and maintenance; accounting for the largest share of the overall bookings compared to online medium in FY’22. Due to the large presence of small and unorganized players in India, offline booking mode remains the preferred choice as they conduct workshops only through offline booking.
• By Expenditure Category (Services, Spare Parts and Consumables): Revenue generated from aftermarket services accounted for the highest market share in the overall two-wheeler aftermarket industry in FY’22, compared to revenue contribution through spare parts and consumables.

Overview of India Two-Wheeler Spare Parts Aftermarket Industry

India two-wheeler spare parts aftermarket industry expanded at a CAGR of 9.5% in between FY’17 and FY’22. The rise in duty on specific items such as engine and transmission parts amongst others from 7.5-10% to 15% since FY’19 contributed in boosting business potential for domestic manufacturing units. Further, enforcement of strict regulatory standards such as enforcement of BS-VI norms since FY’20 is positively contributed to the growth of spare parts industry as there exist a need for advanced two-wheeler parts necessary to abide by the emission standards. Coupled with this, several government initiative such as NATRIP acted as a catalyst for the growth of two-wheeler spare parts industry in India, which aims to generate core global competencies, providing low cost product development solutions to manufacturers, and enables seamless integration of automobile component industry in India to be at par with global standards. In coming years, demand for two-wheeler spare parts in India to be driven by the components required for electric two-wheeler vehicle as the growth of two-wheeler EVs is estimated to expand at a CAGR of 84% in between FY’21 and FY’26 on the basis of sales volume. With the integration of EVs, the carburettor for two-wheelers will be replaced with more efficient fuel injection system to improve productivity, which would positively impact the spare parts industry in India. Major players in the ecosystem are Uno Minda, Spark Minda, Exide Batteries and Apollo Tyres among others.

Classification by Different Type of Spare Parts (Engine Components, Suspension/Braking, Transmission, Electronics, Body & Chassis and Others): Revenue generated through sale of engine components accounted for the highest share in FY’22 followed by suspension/braking and transmission. This is attributed to consumers availing two-wheelers for long distance travel which requires constant servicing of engine parts as well as braking system as compared to body/chassis or electronics.

Competitive Landscape in India Two-Wheeler Aftermarket Services Industry

India’s two-wheeler aftermarket services industry is highly fragmented with presence of large number of OEMs, organized and unorganized multi-brand dealers across the country. OEM workshops enjoy moderate to high power in the initial years as 70% of service fee for newer two-wheelers are covered under warranty. However, post the warranty period of two-wheelers OEMs and organized multi-brand workshops face stiff completion from local garages due to the ease of access coupled with lower service fee charged. It is estimated that 80% of two-wheelers are serviced at local garages post the warranty period as of FY’22. These players compete on the basis of service quality, service time, service fee, digital presence and number of outlets. Followed by the advent of COVID-19, players in the ecosystem mainly organized multi-brand dealers such as Hoopy and Garage Works are enhancing their digital presence across platforms to expand their customer base as consumers are prone to avail online medium for booking and choosing a platform that best suits their interest. The average ticket size for servicing a two-wheeler at OEM workshops post warranty period tend to be higher compared to organized multi-brand workshop offering doorstep service facility.

India Two-Wheeler Aftermarket Services Industry Future Outlook and Projections

The market size on the basis of revenue is expected to grow at a five-year CAGR of ~7.7% in between FY’22 and FY’27E. The market size on the basis of number of vehicles serviced is expected to grow at a five-year CAGR of ~4.8% from FY’22 to FY’27. It is anticipated that surging two-wheeler sales coupled with shifting consumer preference towards availing private medium of transportation followed by the advent of COVID-19 will contribute in the growth of two-wheeler aftermarket services industry. The advent of EVs will cause disruptions for incumbent companies in coming years, as it is creating big opportunities for smaller players, and foreign brands to integrate the ecosystem. Two-wheeler aftermarket services industry would also witness strategic shift from technologies used to service fuel operated vehicles to electric vehicles along with enhancing the skill set of mechanics to service electric two-wheelers.

Key Segments Covered in India Two-Wheeler Aftermarket Services Industry

By Type of Vehicle

• Motorcycles
• Scooters

By Age of Two-Wheeler

• 0-2 years
• 2-4 years
• 4-6 years
• 6-8 years
• More than 8 years

By Region

• North
• South
• East
• West

By Service Split

• Non-Crash Repair
• Crash Repair
• Body Care

By Type of Workshop

• Organized & Unorganized Multi-Brand
• OEM

By Type of Multi-Brand

• Organized Outlet
• Unorganized Outlet

By Brand

• Hero MotoCorp
• Honda
• TVS
• Bajaj Auto
• Suzuki
• Others

By Electric Two-Wheeler Brand

• Hero Electric
• Okinawa
• Ather
• Ampere
• Pure EV
• Others

By Type of Split for Aftermarket Spare Parts and Consumables

• Spare Parts
• Consumables

By Expenditure Category

• Services
• Spare Parts
• Consumables

By Booking Mode

• Online
• Offline
• Consumables

Classification by Spare Parts Type

• Engine Components
• Suspension/Braking
• Transmission
• Electronics
• Body and Chassis
• Cooling System
• Others

Key Target Audience

• Two-Wheeler Organized Multi-Brand Aftermarket Servicing Companies
• Two-Wheeler OEMs
• Spare Parts’ Manufacturers
• Industry Associations
• Government Bodies

Time Period Captured in the Report:

• Historical Period: FY’17-FY’22
• Forecast Period: FY’22-FY’27F

India Two-Wheeler Aftermarket Servicing Players

OEMs

• Hero MotoCorp
• Bajaj Auto
• Suzuki
• TVS Motor Company
• Royal Enfield
• Yamaha
• Piaggio
• Kawasaki
• Ampere
• Pure EV
• Ather
• Okinawa
• Revolt
• Hero Electric

Organized Multi-Brand Aftermarket Servicing Companies

• Hoopy
• Garage Works
• Mechido
• RazorCat
• Gobumpr
• Garage Uncle
• Garage 2 Ghar
• Bike Fixup
• Spot Mech
• Garage On Call
• Ready Assist
• Bike Mechanic
• Protto
• Groomauto

Spare Parts’ Manufacturers

• Uno Minda
• Spark Minda
• Gabriel
• Bosch India
• Amtek
• Sundaram Fastners
• Exide
• Nifco
• Apollo Tyres
• Ceat
• Bharat Forge
• Amara Raja
• Motherson Sumi Systems

Key Topics Covered in the Report

• Overview and Genesis of India Two-Wheeler Aftermarket Services Industry
• Two-Wheeler Sales Volume and Two-Wheeler Parc in India
• Ecosystem of India Two-Wheeler Aftermarket Services Industry
• Market Size of India Two-Wheeler Aftermarket Services Industry (Revenue and Number of Vehicles Serviced)
• Average Ticket Size of Two-Wheeler Service
• India Two-Wheeler Aftermarket Services Industry segmentation (By Type of Vehicle, By Age of Two-Wheeler, By Region, By Service Split, By Type of Workshop, By Type of Multi-Brand Outlet, By Brand, By Electric Two-Wheeler Brand, By Type of Split for Aftermarket Spare Parts and Consumables, By Expenditure Category and By Booking Mode)
• Cross Comparison of OEMs and Organized Multi-Brand Workshops on the basis of Financial Parameters (Sales Volume, Total Income, Net Profit Margin, Inventory Turnover Ratio, Total Expenses, Net Profit and Sale of Spare Parts)
• Company Profile of OEMs and Organized Multi Brand Players (Company Profile, Operational Model, USP, Business Model, Business Strategy, Services Offered, Sourcing of Spare Parts, Pricing Packages, Pain Points, Market Share and Recent Developments)
• Growth Drivers and Challenges to India Two-Wheeler Aftermarket Services Industry
• Industry trends and developments
• Government Initiatives to support India Two-Wheeler Aftermarket Services Industry
• Impact of COVID-19 and Future Outlook of Industry
• Porter 5 Forces Analysis of India Two-Wheeler Aftermarket Services Industry
• Key Decision Making Parameters for Two-Wheeler Servicing: OEM and Multi Brand Two-Wheeler Servicing Companies
• Analysis of Organized Multi-Brand, Unorganized Multi-Brand/Local Garages and OEM Workshops in India
• Overview of Spare Parts Aftermarket Industry in India, FY’17-FY’27E
• Classification by Spare Parts Type (Engine Components, Suspension/Braking, Transmission, Electronics, Body and Chassis, Cooling Systems and Others), FY’22
• Cross Comparison of Spare Parts’ Manufacturers on the basis of Operational and Financial Parameters (Company Overview, USP, Key Customers, Products, Location of Major Manufacturing Plants, Total Income, Profit After Tax , Net Profit Margin, Inventory Turnover Ratio and Debtors Turnover Ratio )
• Analyst Recommendations
• Industry Speaks