B2B-A MARKETING

AUTOMOTIVE
PART INDUSTRY
PRESENTED BY: GROUP 12

Deep Ajay Rao - 201413

Isha Jalan - 201425
Jahnvi Joshi- 201426
Neha Chordia- 201433
Rishabh Bhaskar - 201440
 Global scenario
In 2020, the global auto parts manufacturing
market attained a value of nearly USD 380
billion.
The major drivers of the industry, such as the
rising production and sales of vehicles, growing
digitisation of distribution systems, and
increasing technological advancements and
innovations, are expected to aid the market
growth.
The major sales channels in the industry are
OEM and aftermarket.
The leading components in the market are
battery, cooling system, underbody
components, engine components, automotive
filter, lighting components, and electrical
components, among others.
 Key Industry Players in the Global Auto Parts
Manufacturing Market

ROBERT BOSCH GMBH

DENSO CORPORATION

GENERAL MOTORS COMPANY

VALEO SA

CONTINENTAL AG

SCHAEFFLER AG

MARELLI HOLDINGS CO., LTD.

 Indian Scenario
Over the period between FY16 to FY20, the automotive components
industry registered a CAGR of 6%, reaching US$ 49.3 billion in FY20,
with exports growing at a CAGR of 7.6% during FY16-FY20 to reach
US$ 14.5 billion in FY20.
The Indian government has outlined US$ 7.8 billion for the
automobile and auto components sector in production-linked
incentive schemes under the Department of Heavy Industries.
Production of two-wheelers, passenger vehicles, commercial vehicles,
and three-wheelers reached 21.03 million, 3.43 million, 0.75 million,
and 1.13 million, respectively, in FY20.
Reasons to invest in India:
1. India has emerged as a global hub for sourcing the parts
2. Cost competitive
3. Trade policy favorable
4. No restrictions on export & import
5. Government policy favorable; 100% FDI allowed
6. Enabling infrastructure (e.g.: virtual SEZs for auto components)
present
The Indian auto-components industry is set to become the third-
largest in the world by 2025.
Indian Market share
Top Players in Indian Market

1. Mahindra and Mahindra Ltd.

2. Maruti Suzuki India Limited
3. Amtek Auto Ltd.
4. Honda Cars India Ltd.
5. Bosch Ltd.
6. Bajaj Auto Ltd.
7. Motherson Sumi Systems Ltd.
8. T.V. Sundaram Iyengar & sons Ltd.
9. Sundaram Clayton Ltd.
10. Tube Investments India Ltd.
 Competitive Scenario
Significant entry barrier
It makes it difficult for new players to enters
this industry. The existence of pro players in
the market is perhaps the most significant
entry barrier.

Competitive cost advantage

A cost effective auto-motive industry keeps
their operational cost low making it to be
competitive in the market.

Export opportunity
In the world of globalisation exports have
reduced to authentiv documentation. Auto-
motive industry has great potential
worldwide.
AUTOMOTIVE INDUSTRY
CAN BE CLASSIFIED
INTO 2 SECTORS:
1. ORGANIZED SECTOR:
2. UNORGANIZED SECTOR:

OEM FORMS A PART OF THE ORGANIZED SECTOR

AND USUALLY DEALS WITH HIGH VALUE PRECISION
INSTRUMENTS

AFTERMARKET FORMS A PART OF THE

UNORGANIZED SECTOR AND USUALLY DEALS IN
LOW VALUE PRECISION INSTRUMENTS Big Spark Solutions | 2020
SOLUTION OFFERED BY OEMS
ORIGINAL MANUFACTURERS OF PARTS

Provides original parts and comes with certified

compatibility, the price is usually high.
Ensure the parts are fully compatible with the vehicles
Buyer does not need to worry about the product quality
The replacement of part is less complicated as the product
is standard and sold directly by branded car dealerships
Automotive OEMs can be segmented on the basis of
component, vehicle type and distribution channel
SEGMENTS OF OEM
1. Component:
a. body, b. electrical and electronics, c. interior, d.
power-train and chassis and e. others.
2. Vehicle type:
a. commercial vehicles, b. passenger cars and c. electric
vehicles.
3. Distribution channel:
a. retailers, b. wholesalers and c. distributors.
SOLUTION OFFERED BY
AFTERMARKET
PRODUCED AND SOLD BY OTHER VENDORS

Cheaper than OEMs but at time also provide high quality parts
with additional features at high price
Compatibility and installation success is not gaurenteed
Quality is not standard as it is manufactured by different
vendors
The experience of replacement may differ from one vendor to
another
SEGMENTS OF AFTERMARKET

1. Wear-and-Tear Parts: more than 61% of the aftermarket

share
2. Crash-Relevant Parts
3. Accessories and Appearance Products
4. Diagnostics Products
5. Services (Fleet Management etc.): fastest growing segment
with more than 9% CAGR expected
 EMERGING PLAYERS IN THE
INDUSTRY
Start-ups like Gaadifix, In addition, the These pose a serious
spareshub, carxpert market for the threat to existing
etc. move into the auto purchase and sale of businesses.
parts sector. They are spare parts has
connected to hundreds become online. Web
of garages and sell sites like automotive-
spare parts for cars ONLINE.COM,
with an expired b2bcarparts.com, etc.
warranty. have seen the day.
 NATURE OF COMPETITION

With the advent of 3D printing of spare Many competitors will

start-ups and online parts leads to instant therefore lead to value-
marketplaces for spare printing of spare parts based prices, so better
parts, competition is in local subsidiaries, value at low prices will
growing. With the number of centres be much appreciated.
increased competition, will gradually increase.
there is a price
reduction due to the
competitive pricing
model.
 Market Leader: Bosch
Product Portfolio and Revenue Strategies
Bosch is the leading global supplier of technology and services. The Business is divided
into two main parts Mobility Solutions and Industrial Technology.
The product line includes new age tech like Chassis Systems Control, Electrical Drives,
Cross-Domain Computing Solutions, Car Multimedia, Automotive Electronics.
Core products of Bosch are automotive components- steering systems, starter motors,
generators, fuel system, electronics, electrical drives, controls, brakes
Bosch has 18 manufacturing sites, and seven development and application centers in
India
In fiscal year 2020, the Bosch Group in India employed over 31,500 people and
achieved consolidated revenues of around Rs.19,996 crores (2.54 billion euros), of
which Rs. 14,011 crores (1.78 billion euros) were from consolidated sales to third
parties. In India, the Bosch Group employs around 15,650 research and development
workers. Bosch Limited is the Bosch Group's flagship firm in India. In 2020, it made a
profit of over Rs. 19,996 crores* (2.54 billion euros).
Market Leader: Bosch
Bosch sells to automobile manufacturers and dealers both directly and indirectly.
Vehicle owners benefit from Bosch's 2500 workshops and service centres, which
provide the highest level of customer support and solutions.
Distribution Strategies
Bosch Automotive Aftermarket
has the largest distribution
network in India and hence has
a significant presence in the
Indian market.
The projected product line is
India's largest single-brand
consolidated brand, with several
applications in two- and three-
wheelers, cars, MUVs, light
commercial vehicles, heavy duty
vehicles, buses, tractors, off-road
applications, and stationary
engines. There are about 1000
distribution networks around
the country.
Artificial Intelligence and IoT

AIoT will allow Bosch dramatically improve the proportion of yearly recurring
revenue over the medium term. This should also make operations less
susceptible to cyclical variations.

AIoT provides an opportunity to support customers throughout the entire

product life cycle. The use of connected, intelligent solutions make life easier,
more efficient, safer, and also more sustainable for as many people as possible
Market Challanger
Product Portfolio and Revenue Strategies

ZF after acquiring employs 162,000 people worldwide, with about 260 facilities in 41
countries, WABCO Holdings Inc. on May 29, 2020. The two formerly independent
enterprises now have a sales of €36.5 billion (ZF) and $3.4 billion in 2019. (WABCO).

WABCO India is a leading provider of commercial vehicle technologies and services in

India. WABCO India is a leader in breaking new ground and bringing industry-leading
solutions to the commercial vehicle market in India and around the world.
The core products include air-assisted braking systems, conventional braking products,
and similar air-assisted technologies and systems
As per the Statement of Profit & Loss for the year ended 31st March 2021 Revenue
from operation is 186,350
Distribution Strategies

The corporation maintained its policy of reducing production footprint, moving

product lines closer to customers, and encouraging plants to become self-sufficient.
The strong resurgence of demand for domestic and export products was controlled
by implementing capacity augmentation projects with optimal investments, utilizing
lean and frugal engineering capabilities.
WABCO is constantly inventing and investing in critical enabling technologies that will
fully harness commercial vehicles' "growing intelligence," resulting in a safer
environment for all road users and more productive fleet applications. A variety of
variables, including public attitudes and governmental requirements for safety and
efficiency, are driving progress toward the adoption of increasingly ACE (Autonomous,
Connected, Electric) vehicles.
 Addressing the Cybersecurity Risks of
Connected Commercial Vehicles

WABCO was the first to introduce WABCO ABS for commercial vehicles
WABCO's connected OptiLock ELB-Lock® door locking solution, combined with
the Transics TX-TRAILERGUARD trailer telematics system
WABCO continiously monitors cyber threats and invests an substantial amount
towards R&D for the same.
Market Follower EXIDE

Product Portfolio and Revenue Strategies

Exide employs a variety of pricing methods based on market demand.

They charge a premium for their items because they know the exile is the best on the
market and that the after-sales support is likewise excellent.
Exide employs pricing strategies such as skimming and penetration, as well as seasonal
pricing, bundling, price flexibility, and price
discrimination.
As a result, product items are dependent on market demands.
Revenue from operations for the year 2020-21 is estimated to be 10,040.84 crores,
according to the Statement of Profit and Loss.
The core products are automotive batteries, industrial batteries, inverter batteries, home
UPS systems, solar solutions, genset batteries e-rickshaw vehicles, submarine batteries
Exide is the market leader in automotive batteries, supplying batteries to the majority of
automobile and two-wheeler manufacturers in the country. There are four batteries in all.
Exide generates money by supplying automotive parts to a variety of car manufacturers.
Honda, Fiat, Toyota, Hyundai, John Deere, Telco, Suzuki, Mazda, GM, Leyland, Caterpillar,
Mitsubishi, and Piaggio are among Exide's OEM customers.
Lead acid batteries for vehicles, motorbikes, generators, and trawlers are manufactured by
Exide.
Exide partnered with Tata to provide batteries for the TATA - Nano.
Distribution Strategies

Add Exide's Industrial Battery Dealer and Service Network: There are over 1,000 licenced
dealers and 232 sales and marketing personnel. There's also "Tracmobile": Exide Power
Centre stores were created for its traction consumers to offer a consistent appearance
and feel as well as a standardised pleasant brand experience.
There are now 29 Exide Power Centre stores in India.

Niche SparesHub
Product Portfolio

and Revenue Strategies

SparesHub.com is a vehicle parts marketplace. Even commercial vehicle,

earthmoving machine, and road roller spare parts vendors have approached us
to offer them on SparesHub.com.
SparesHub.com has formed partnerships with premier auto parts
manufacturers, distributors, and suppliers in order to provide the greatest
choice of items at the most competitive prices.
Headlights, rear lights, direction indicators, mirrors, door mirrors, crankshafts,
Wiper, clutch plates, pressure plates, bearings, flywheel, timing belts, ball joints,
valves, suspensions, struts, bush kits, electric generators, starters, electric relays,
pistons, and so on are among the products offered by the company.
There are now around 45 suppliers on the marketplace, with over 19,000 goods.
The firm distributes a variety of product lines to automobile manufacturers and third-
party vendors.
The market penetration pricing model is used by SparesHub.
They assess based on the market demand for this goods.
Because the corporation is involved in e-commerce, the items are sold at a lower price
than the market rate.
SparesHun sells only authentic replacement parts and have partnerships with firms like
Monroe (a suspension parts manufacturer headquartered in the United States) and Tata
Auto Components to make their whole product line available on SparesHub.com.
SparesHub obtains items from Pune and Mumbai-based corporate spare part distributors.
They've also made agreements with spare component makers to assist them obtain the
cheapest costs.
They have access to their dealer network and warehouses across India, so spare parts are
never an issue.
They are able to handle the problem of vehicle replacement parts across India by utilising
e-commerce, a diverse supply base, and automobile know-how.
Practices in Automotive Distribution in Future

We predict a lot more physical variance in channels and formats, as product rivalry shifts even
more to services and brand qualities. In new car sales, for example, traditional resellers versus
direct internet sales or a multi-brand discount store is called a 'channel'.

The six distinct businesses that make up the conventional concession will be split up: When automotive retailing
was still a young business, the integrated model - new vehicle sales, used vehicle sales, finance and insurance,
service, parts, and fleets - was created early on. It doesn't make much sense in today's world. To suit a variety of
client needs and economic constraints, different operational structures will be required.

Dealer mergers will result in significant economies of scale in back office activities and purchase leverage. Cutting
stocks, reducing investments in brick and mortar and real estate, and improving service delivery can result in far
higher savings for consumers. New formats and channels will eliminate non-value-added costs.
The focus of marketing and distribution will be on establishing long-term customer
connections: Customer acquisition costs are expensive and rising, therefore it's only
natural that manufacturers and their distribution chains work harder to keep
customers. On two axes, we can see how these relationships develop: "follow the car"
and "follow the consumer."

Manufacturers will aim to build a much tighter relationship with their customers: We
are confident that someone will decipher the conundrum of consumer demands,
desires, and experiences. The portion of this prediction that is shaky is that
manufacturers will arrive first, not the other actors in the chain.
 Emerging players

•After experiencing a rough patch during the covid-19 pandemic, the automotive industry is approaching its new
and emerging era.

•Our team has assembled all the exhibitions in the automotive industry in 2022.

•Exhibitions are powerful tools to market your brands and

meet new interesting companies.

•Xinergy global is here to ensure an innovative and strategic approach toward the future of automobility so that
your business will continue to thrive long-term.

•Gaadifix, spareshub, carxpert, and other start-ups are moving into the auto parts industry. They sell spare
components for cars with expired warranties and are connected to hundreds of garages.

•Furthermore, the market for purchasing and selling spare components has gone online. Automotive-online.com,
b2bcarparts.com, and other websites are no longer active.
SOME LEADERS OF THIS INDUSTRY

TVS Sundaram Clayton Limited

BOSCH
JBM Group
Avtec limited
Minda industries limited
Anand group
Bharat forge limited
Amtek group
 NATURE OF COMPETITION
• Competition is increasing as a result of the emergence of start-ups and online markets
for spare parts. Due to the competitive pricing model, there is a price drop as a result of
increasing competition.

• Because 3D printing of replacement parts leads to instant printing of spare parts in local
subsidiaries, the number of centres will steadily expand, resulting in value-based pricing.

•It is difficult for new brands to enter the automobile industry. This is because of the large
investment required for establishing a car brand. Another major barrier is the level of
competition from the existing brands. Apart from Tesla, there is hardly a new brand that
has been able to make a significant mark.
 LATEST OBSERVATION
India's top 5 automotive component suppliers are expected to be among the top 100 suppliers in the
world. The automotive spare parts business is online. 3D printing of spare parts has resulted in the
transfer of the central production facility to local subsidiaries.

A connected car can easily transmit data from other nearby vehicles, road sensors, infrastructure, and
more. The connected cars' market is predicted to be worth over $215 billion in just about five years
from now. Soon, 5G-connected vehicles are about to be the new norm.

Automotive players must cater to this new purchasing method and build an advanced digital strategy.
By 2025, 20 percent of vehicles in urban centers will be dedicated to shared use. Instead of falling
behind, OEMs can capitalize on this opportunity and reposition their brand.

Electric vehicles with advanced features can drastically shift the automotive industry. Charging spots
availability, cost-effectiveness, consumer acceptance, and growing emission regulations are some of the
conditions that must be met. The share of electrified vehicles could range from 10 percent to 50
percent by 2030.
 References

https://www.ibef.org/industry/autocomponents-india.aspx
https://www.expertmarketresearch.com/reports/auto-parts-manufacturing-market
https://auto.economictimes.indiatimes.com/news/auto-components/etauto-
originals-who-owns-the-indian-component-industry/74880674
https://www.investopedia.com/ask/answers/041515/what-original-equipment-
manufacturer-oem-automotive-sector.asp
https://www.databridgemarketresearch.com/reports/global-automotive-oems-
market
https://www.exideindustries.com/
https://www.exidegroup.com/en
https://www.emis.com/php/industries/overview?indu=3363
 References

Marketing Distribution Channel of Ceat Tyres Essay - 2908 Words. (n.d.). Retrieved
from http://www.studymode.com/essays/Markteting-Distribution-Channel-Of-Ceat-
Tyres-1151379.html
How Spareshub is saving you the stress of maintaining your luxury sedan. (2014,
August 31). Retrieved from https://yourstory.com/2014/08/spareshub/
Growth of Auto Component Industry in India – Infographic. (2017, November 7).
Retrieved from http://www.ibef.org/industry/autocomponents-india/showcase
Thank You