The Client: A Global Auto Component Manufacturer

The Scope

The Client would like to understand Automotive Aftermarket in the Select African Countries with respect to the changes to demand due to new vehicle technologies, better product quality leading to increase in product life, e-retailing, increasing market of OES sales, imports, counterfeiting etc.

Project Objectives

• Aftermarket Assessment: Conduct a qualitative assessment of the current business practices in, and the trends impacting the auto component aftermarket in Select African Countries
• Aftermarket Potential: Estimate the potential of around 50 different components across the 2 and 3 wheelers, passenger cars, commercial vehicles and tractors segment

Our Approach and Work

• Aftermarket Assessment
  Understand the key business practices of each stakeholder and the current trends impacting the auto component market, through over 1100 qualitative in-depth interviews with auto component distributors, retailers and mechanics, spread across the country and in major cities
• Vehicles in Operation
  All current vehicle registration data was collated from authorized sources
• Aftermarket Potential Assessment
  The lifecycles of all 50 components were arrived at through interactions with mechanics for different vehicle segment, which were further validated through expert interviews with component manufacturers. Component life cycles were used to arrive at the relevant vehicle population for each component. Based on the share of consumption of components between OE genuine spares, aftermarket branded spares and unorganized parts, a weighted average price was applied to arrive at the market potential for each component

Outcome and Business Impact

GRC delivered a comprehensive qualitative report supported by tabulated data which to serve as a ready reckoner for businesses, small and large, with interests in the Select African Countries Auto Component Aftermarket